October 8 2008, a day in history…In an emergency move led the United States we had a worldwide rate cut. For the first time in history and with unprecedented coordination the Fed, ECB and other central banks got together to battle a weakening global economy. The Fed cut rates a half a point to bring the Fed funds rate to 1.5%.

This kind of rate cut will have a serious effect on mortgages backed by our prime rate and London’s Libor, freeing up a massive amount of consumers month-to-month cash flow. Experienced Real Estate investors will be able to take advantage of these lower interest rates and buy up already heavily discounted properties.

Over the last week rates on Conforming and FHA loan products have already dropped drastically, helping consumers qualify for new mortgages that otherwise would have not. These low rates may only be temporary but we sure do appreciate them and advising our clients to try to take advantage of them.