CHECKMATE REAL ESTATE

FEDS TO CUT RATES DECEMBER 11th 2007

The Feds are looking to cut rates to stem the rising credit crisis. I am guessing that this will lower interest rates by 50 points which will put the rate at 4%.

For those who read my blog dated Oct 19^th below know that when the FED cuts rates you will see an immediate reduction on all Prime Credit (Home Equity Line of Credits, Credit Cards) and short term ARMs (Adjustable Rate Mortgage) based on the LIBOR index. This is good news.

The Feds have increased rates 17 times from 2005 – 2006. Now that inflation is in check (due to Consumer Spending and Jobs) and the current credit crisis, the Feds are looking to cut rates to entice consumers to start buying again. We recently had two rate cuts to get us to 4.25%. So expect the FEDS to do what is right