Moore Mortgage Solutions

    Today the Federal Reserve cut the Fed Funds Rate by another .50%. This now makes the Fed Fund Rate at 3.0%. And they took the Discount Rate down to 3.5%. The Discount Rate is the rate that member banks can borrow from the Federal Reserve.

    In their statement today, the Fed stated that the financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.

    Also, the Committee expects inflation to moderate in the coming quarters.

    What does this mean to you? Short term interest rates will go down. This will affect your credit cards, your home equity lines of credit, and new car loans lowering your overall interest on them.

    The market of late has been volatile as traders try to find the best place to invest money. But remember as money flows out of the bond market, interest rates on mortgages go up.

    Even though it has been a volatile market, this is still a good time to buy a home in the Seattle/Tacoma area. And it is also a good time to refinance your present mortgage as rates are the lowest they’ve been in the last three years.

    If you have any questions about the market, would like to take about the possibility of refinancing your present home mortgage, or get approved to buy a new home, please do not hesitate to contact me.

    Until then, make every day an inspired one!

Betsy Moore