Yesterday, Ben Bernanke gave every indication that the FED will lower rates at its next meeting. Most experts expect a 1/2 point reduction and as much as 1 1/2 points in total reductions by the end of March. Moreover, Mr. Bernanke alluded to the fact that the FED will not hesitate to intervene in between meetings if more negative economic indications develop. He was particularly focused on declining home values, ongoing liquidity issues and the jobless rate. Along with future rate cuts, Mr. Bernanke announced that the FED will auction an additional 60 billion dollars in 28 day loans over the next month to financial institutions. (Source: CNBC, WSJ)
Bank of America has acknowledged its intent to buy Countrywide Financial Services. (Source: WSJ)
On average, mortgage rates dropped from 6.07% to 5.85% over the last week. (Source: WSJ)
For qualified buyers, it just keeps getting better, but low rates and low home prices do not usually coexist for lengthy periods of time.
Friday, January 11, 2008
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