Feds strike again

The Federal Reserve slashed interest rates that banks charge each other three quarters of a point last week and the stock market replied with a huge rally.  This will help consumer confidence and shows the Fed is not afraid to act but if you are waiting for mortgage interest rates to have any substantial decrease I wouldn’t hold my breath.  Lenders are giving mortgages to consumers with good credit worthiness and you will be hard pressed finding 100% financing or these types of loans.  It’s back to basics for the mortgage industry as well.  Every sector of the real estate business is going through these type of corrections.  Lenders making sure buyers can afford mortgages, Realtors helping buyers understand the market they are in and what good deals are compared to over priced homes and with sellers talking to them about how to price a home in a buyers market.