Federal Reserve Board Reduces Rates By 1/2 Point

This is The second 1/2 point reduction in the same month. This means that the Fed Funds Rate went from 1.5% to 1%. This is the rate that banks charge on overnight loans. The last time the Feds Funds Rate was this low was back in 2003 -2004. Th last time this rate was lower was in 1958. This will hopefully cause banks to start lending to one another. To read the entire article and reason why The Fed did what it did today click on the Title of this post. In short This rate matters because it is meant to stimulate the economy! If banks will not lend to one another or give a loan to a business, the market comes to a halt. Sometimes it is important to talk about these "Snoring Issues", both to educate those that dont understand how truely important the Fed Funds Rate is to our economy, as well as making this blog an informative source of information for those that visit our blog. Most Real Estate Agents dont get this indepth about different interests rates and how they effect our economy and therefore the Real Estate Market Nationwide. Now then to clarify things a little more: Whenever the Fed Fund Rate is lowered does NOT mean that Intrest Rates for things like HOMES goes down. They could, but there is NO guarantee that this could happen. Infact, rates for homes could even go up.