Fed Cuts Rates Another 1/4 Point
The fed has made it official. In a widely anticipated move, the Federal Reserve voted to lower both the fed funds and discount rate by 1/4 today. The cut brings the fed funds rate by a total of 1%. While the move has made little difference to mortgage borrowers, it increases margins for banks and cushions the blow from bad mortgage loans. What difference does this make to the New York real estate market? Not much, but it certainly will not hurt. Unlike most housing cycles, this go round is different in that rates are low and the dollar is cheap- both are positive factors for the New York market.