Fed Slashes Interest Rates By 50 Basis Points

RE:Fed Slashes Interest Rates By 50 Basis Points

Joe — Wed, 19 Sep 2007 11:00:00 GMT

Prices have risen since 2001 for sustainable reasons. The interest rates dropped significantly and as most people know people make their buying decisions on not how much something costs but how much will it cost them monthly. With rising incomes and lower rates people simply could afford to pay more . Speculation has effected some markets and that will correct. Real estate increases like a set of stairs, we are no longer on the riser but the tread. I think we will tread for quite a while.

RE:Fed Slashes Interest Rates By 50 Basis Points

jose — Wed, 19 Sep 2007 11:00:00 GMT

In 05, homes that were valued and worth only approximatley $150,000, were ridiculously priced and sold in 06 for $500,000 to $600,000. The lowering of Â½ point on the interest rates is only a minor step to correct the housing market. Speculators and consumers that purchased inflated priced properties are now complaining that there are no buyers, or are facing foreclosure. The giant leap required to correct the housing market is that property value must go down to reality as fast as it went up.

RE:Fed Slashes Interest Rates By 50 Basis Points

Anon — Wed, 19 Sep 2007 11:00:00 GMT

Interesting thing though is that mortgage interest rates actually went UP after this news because they are tied to the bond market, and the bond market was weakened by the stock market rally.