Big News! Good News! Surprising News!
A rate cut was expected today, but the aggressive .50% rate in both the Federal Funds Rate and the Discount Rate surprised many, including myself.
The Federal Reserve lowered its benchmark interest rate by a half point to 4.75 percent, this is the first Fed rate cut in four years!
In a statement the Fed says,
In an article at CNNMoney.com, Alan Skrainka, chief market strategist with Edward Jones .
Shortly after the announcement, the Dow gained nearly 250 points, with the S&P 500 and Nasdaq both shooting up more than 2 percent. The last I looked Home Builders that are publicly traded where up and mortgage lending companies like Countrywide and Wells Fargo went up.
I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious.
A message to Home Sellers: Take a page from the Federal Reserve book. They didn’t cut .25% and try to chase the market. They got in front of the market with a .50% rate cute. Are you pricing your home and chasing the market of buyers or are you getting out in front of the pricing correction?
Related Posts:
9 Comments
September 18, 2007 at 2:06 pm
[...] We wrote more about the rate cuts, the stock market and the housing market at our main blog, The Gardyn. I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious. [...]
September 18, 2007 at 2:12 pm
[...] We wrote more about the rate cuts, the stock market and the housing market at our main blog, The Gardyn. I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious. [...]
September 18, 2007 at 2:17 pm
[...] We wrote more about the rate cuts, the stock market and the housing market at our main blog, The Gardyn. I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious. [...]
September 18, 2007 at 2:18 pm
[...] We wrote more about the rate cuts, the stock market and the housing market at our main blog, The Gardyn. I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious. [...]
September 18, 2007 at 2:19 pm
[...] We wrote more about the rate cuts, the stock market and the housing market at our main blog, The Gardyn. I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious. [...]
September 18, 2007 at 2:21 pm
[...] We wrote more about the rate cuts, the stock market and the housing market at our main blog, The Gardyn. I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious. [...]
September 18, 2007 at 2:24 pm
[...] We wrote more about the rate cuts, the stock market and the housing market at our main blog, The Gardyn. I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious. [...]
September 18, 2007 at 2:27 pm
[...] We wrote more about the rate cuts, the stock market and the housing market at our main blog, The Gardyn. I have talked in past the housing market in Madison is slowing more on psychological reasons, instead of a fundamental reasons. This will probably help many buyers that are sitting on the fence start get more serious. [...]
December 15, 2007 at 6:55 am
very interesting, but I don’t agree with you
Idetrorce