This is one of the biggest stories in years. The Federal Reserve Board of Governors has slashed the Federal Funds Rate .75% to 3.5%.
This rate is often used as an economic indicator and it is a rate which many other consumer indexes take their cue from.
With concerns about the economy and the US Government wanting to give the housing market a boost it is welcome news. The question does remain, how low can it go?
The Federal Funds rate directly impacts consumer debt, credit cards, home equity lines and car loans. By reducing the rate here it means that consumers will have more disposable income to spend on other items. Even as much as looking at purchasing a new home by bolstering consumer confidence.
If you are considering a home in the Malibu area then please contact Judy Kunisaki on 310-317-8396.
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Citing weakening economic outlook, Federal Reserve makes biggest cut in nearly 24 years - three quarters of a point.
Federal Reserve System Board of Governors
Press Release 23rd January 2008
