Fed Rate Cut

6 things to know about the Fed rate cut
The Federal Reserve this week reduced the federal funds rate to a range of zero to 0.25 percent.
The rate cut likely will not impact 30-year, fixed-rate mortgages. The real impact will be on
consumer loans tied to the prime rate, such as home-equity lines of credit and credit cards with
variable interest rates. Borrowers with loans tied to the prime rate may see an interest rate
decrease.
To read the full story, please click here:
http://www.usnews.com/blogs/the-home-front/2008/12/16/-6-things-to-know-about-the-fed-ratecut.
html

Mortgage Rates Drop

U.S. Mortgage Rates Drop Most in Seven Years on Fed Debt Plan
Interest rates last week on 30-year, fixed-rate mortgages fell to an average of 5.5 percent, the largest one-day decrease in at least seven years. The decline was prompted by news that the Federal Reserve plans to purchase $600 billion of mortgage-related debt and set up a $200 billion program to support consumer and small-business loans. Homeowners with sufficient equity in their homes may qualify for the lower rates and refinance into a new home loan.

To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=20601213&sid=akf9_ZmmdeTY&refer=home

California Association of Realtors