I'm a mortgage broker and follow this very closely.. The .25% rate cut was already priced in to the market last week. The key to yesterday's rate cut is the underlying statements by the Fed...there is still concern for more economic weakness, however there are some signs of a turnaround. They Fed clearly left the door open for another possible rate cut...It will take a few days for the dust to settle, which will most likely leave rates close to current levels, with a pretty good chance that they will drift slightly lower as the summer moves on. The key is when and if any economic growth will creep back in....The fed is clearly trying to fuel the growth, however, it may have been premature... Stay tuned to the consumer confidence and unemployment levels...Real estate seems to be propping up an otherwise lagging economy.

P.S. I write loans in all 50 states and will discount to all OSO members!


Marcus Z.