So if you haven’t already heard the Fed cut rates again for the second time in 8 days, which means you are probably sitting in your home that is being remodeled with no TV, like I am.  Actually, I have a TV, just no cable right now. Thank god for the Internet.

Experts feel the Fed is not done cutting rates yet.  Again, this means short term loans, credit card rates, home equity loans, etc will be lower immediately.  I do believe that long term mortgage rates will still head somewhat lower, due to the poor economic data that will probably come out, thus stocks push lower, in turn helping long term mortgage rates. 

Usually with a Fed rate cut we see stocks recover for a couple of days, causing long-term mortgage rates to worsen, but then the buzz wears off.

Since Fed monetary easing takes about a year to have its full impact on the economy, this will help cushion the growth slowdown but only by late this year and early next year.

The reason the Fed cut rates is:

The Fed said it sees “considerable stress” in the financial markets, as well as deepening in the housing contraction and some softening in the labor markets.

If you haven’t thought about refinancing, now is the time to do so.  Click on the audio icon to hear Rate Cuts May Set Table For Refinancing. Rates are very low right now, so consider taking advantage. Read Harvey Shapiro’s article on the rate cut.

Here are other articles: Fed Makes Second Deep Cut Into Interest Rates

Marketplace Reprt: Another Rate Cut

Is It Time To Refinance?