Fed Lowers Federal Funds Rate .75% to 3.5%
It’s amazing how quickly fear of inflation can be replaced by fear of recession.
In a surprise move, the FOMC lowered the Federal Funds Rate by .75%. That this happened before the FOMC’s regularly scheduled end-of-January meeting, combined with the size of the cut and the willingness to aggressively cut further, indicates how precarious the Fed views the economy at this time.
What does this mean for mortgage rates? Here’s an extremely popular post from last year: The Relationship Between Federal Funds Rate and Mortgage Rates.
Fed Lowers Rates, Mortgage Rates Up? « Mortgage Planning ABC said,
January 25, 2008 @ 5:45 pm
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