Fed Lowering Interest Rates?
News this morning is that the Federal Reserve, or “The Fed” as it is affectionately termed by those in the financial industries and those of us who just read this stuff, maybe be lowering interest rates soon in an effort to ease credit worries and the currently worsening economy due to the mortgage crisis.
The US government already authorized a forced freeze on certain types of mortgage loans in an effort to ease the stress of increasing interest rates of mortgages on those with certain types of mortgage loans on their homes. However, reportedly this freeze did not give all who own a home and have a mortgage a break, only a specific sector was influenced by this decision.
The Federal Reserve, under Bernanke’s leadership, has already cut the interest rates twice this year to relieve some of the mortgage and housing crisis, but it is said that more cuts may be needed to provide any real type of relief. See the mortgage calculator and loan comparison calculator for examples of what types of loans and mortgages are available out there for consumer now, and you can get more of an idea what I’m talking about. All this stuff is so confusing sometimes!
Bernanke has said that it is the Fed’s responsibility to keep the economy moving, and further rate cuts may be necessary to keep that going, and to keep the stock market active, since before this housing crisis, the stock market was much more busy with foreign investment, and now many foreign investors are reluctant to “invest in the US” since the fears about housing and the mortgage credit crunch.
