what does it mean that the Fed cuts interest rates?

[jj15]

What interest rates? On auto and home loans?

[Anonymous]

Unfortunately, lenders are still tighening requirements - BUT on the up side lower rates = more buying power.

[maxq]

great question!

personally i just don't know if my wife and i will be able to get a loan this year. not because of our scores but because we are 1st time home buyers. there doesn't seem to be much out there to help 1st time home buyers anymore. i've heard, maybe it's not true, that you won't be able to buy a house without money down. well, we have saved a little but not looking to put 10%, 20% or even more down on a house. not happening.

so i'm concerned with all the recession talk as well as the mtg outlook for this year.

anyone else want to shed a light on this subject?

[Anonymous]

Tried and true program - FHA.  Went by the wayside during the boom.... has always been a good program for first-timers.

[jj15]

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@Anonymous wrote:

Unfortunately, lenders are still tighening requirements - BUT on the up side lower rates = more buying power.

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But WHAT RATES were cut? I don't get it.

[Anonymous]

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@jj15 wrote:
What interest rates? On auto and home loans?

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I believe it's the Fed Funds rate that the central bank charges banks when the banks borrow from the fed.

Not mortgage, auto, revolving interest rates. BUT...it does have a trickle down effect to all lending institutions, and eventually to us consumers.

[Anonymous]

http://www.msnbc.msn.com/id/22783705/

[Anonymous]

Basically what this means is if you have avariable rate card or loan, you should reap the benefits of therecent fed cuts as your rate is based on prime plus whatever.  Since most cards nowadays are offering variable rates.  Check your next couple of statements (or in BofAs case 3) to see the reduction in the interest rate you are charged.

[Anonymous]

from NAR but an intersting read anyway  http://www.realtor.org/reinsights.nsf/pages/economistcommentary?opendocument

[maxq]

bumping this up.......

another rate cut today by the fed, as expected no less....

just wondering what your thoughts are about this as we continue to see the fed step in and try to relieve the markets and financial institutions????

how much of a difference, if anything, will we see now with another rate cute??