Fed cuts Interest Rate

Most of you should know by now, but if you don't, the Federal Reserve cut it's key rate by a half point yesterday. This will begin to affect mortgage rates within a couple of days. Recently, a 30 year fixed loan was going for between 6-6.25%. We should see it come down to between 5-5.75%. The Fed did this in response to the softening real estate market, the credit crunch brought on by too many iffy loans, and the impact that all this has on the whole economy. If you hadn't noticed, the housing market was the only thing propping up our economy the last few years. As people buy homes, they also buy furniture, renovate, and landscape. If you've been thinking about buying a home, now seems to be a great time. Inventory is still very high, giving you plenty to choose from and negotiable sellers and now you can get your loan for well less than 6%. On a $200k loan, this will save you about $65 on your monthly payment. Buyers should jump in with both feet. I'll be looking for an investment for myself as well.