Announcing that they were taking the extraordinary action of changing rates between their periodic Federal Open Market Committee meetings, The Fed early this morning dropped the Federal Funds rate by 75 basis points, or three-quarters of a point.
The size of the rate drop was significant, since a reduction of that magnitude had not taken place since 1990... eighteen years ago.
The last time the Federal Reserve Board announced a rate cut between their regularly scheduled meetings was in 2001... reflecting the severity of the market conditions which greatly contributed to the cut.
Taking the extremely unusual step, Ben Bernanke, Chairman of the Federal Reserve Board, held an emergency video conference overnight, and announced the rate change approximately thirty minutes before the New York Stock Exchange opened for business this morning.
The primary reason Bernanke gave for the change was an attempt to head off the growing concern that the weakness in the US economy was quickly translating into a downward spiral in foreign stockmarkets world-wide.
Many economists also thought there appeared to be a good chance that during the regularly scheduled FOMC meeting at the end of January... that further rate cuts may be announced.
In addition to cutting the Federal Funds rate, Bernanke also announced that the Fed was cutting its discount rate as well. Many commercial banks throughout the US responded by making an equal reduction of 75 basis points in their "prime rate."
It remains unclear whether Bernanke's action in convening his overnight video conference was due to both the near panic in the overseas markets, and the intense criticism he and the Fed have come under for their apparent failure to respond more quickly to both US and world conditions.
I take great pleasure in introducing my Loan Officer for the past six years... Ms Rayne FitzMaurice.
With over ten years experience in the Mortgage Loan Industry, Rayne has been my Loan Officer of choice. With Rayne's experience, combined with her extensive mortgage loan product line, have allowed her to help hundreds of home buyers fulfill their dreams of home ownership.
In addition to her mortgage loan experience, Rayne also has a background in the Title Industry. When you are placing the success of your buyers in the hands of a loan officer, nothing succeeds quite like a background of success.
Rayne's market area includes all of the Greater Fort Worth area, all of Tarrant County including Keller, Grapevine, Colleyville and Southlake to the north, the Mid-Cities of Hurst, Euless and Bedford.
Rayne also covers the cities of Richland Hills and North Richland Hills, Haslet and Saginaw, Arlington and Mansfield.
Unlike many loan officers, Rayne will gladly meet with your buyers and take their loan application on weekends, evenings, or whenever your buyers need to meet with her.
Although Rayne works with all types of buyers, both first time buyers, local move-up buyers, and buyers relocating from out of state, first time buyers are close to her heart.
Her background allows her to take these buyers by the hand, and lead them through the maze that is required to find just the right mortgage financing to fit their needs. If you are a Realtor who needs a Loan Officer who is also a "hand-holder"... Rayne is your girl !
Says Ms FitzMaurice: "There is nothing quite like the feeling I get when I see the smiles of my borrowers at the closing table. As you can easily see, I really enjoy what I do."
Rayne has this really "odd" thing about her. She actually returns my phone calls. I find it very frustrating when I am trying to put together a transaction, and need an answer from my Loan Officer, to have to leave voice mail after voice mail with a lender... and not get a return phone call for days. Not so with Rayne. Rayne FitzMaurice actually returns phone calls. What a concept !
To all you on Active Rain, please join with me in welcome Rayne Fitzmaurice of DHI Mortgage Fort Worth to the Active Rain Community. Rayne, I know you will feel very much at home, here !
Karen Anne Stone
Federal Reserve Chairman Ben Bernanke, Alan Greenspan's replacement, yesterday announced that the "Fed" is entering the New Year with plans to aggresively cut interest rates.
Bernanke said that the Federal Reserve board has decided that avoiding a recession is a much greater worry that containing inflation.
Many Fed Watchers believe that at the next meeting of the FOMC... the Federal Open Market Committee... which meets about every six weeks... will drop interest rates by a full one-half percent instead of the "baby step" cuts of one-quarter percent that have been seen over the past fiscal quarter.
Many people who in the past criticized Alan Greenspan's approach to interest rates, have come full circle and have been coming down even harder on Bernanke. As much as many wished that Greenspan would retire earlier than he did... many of those same "Fed watchers" have wished that Greenspan was still at the helm of the Federal Reserve Board.
In hoping to stimulate the economy, Bernanke uttered words in the usual "Fed-speak" language that "additional 'policy easing' may well be necessary." What a comedian this Bernanke guy is !
The Fed has it's own language. Instead of using the nasty R word... recession... the Fed and many economists prefer to use their own term. They would rather say that the economy has been experiencing a period of "negative growth." Negative Growth ? Uh huh. Yes, Ben. Yes Mr Bernanke.
Several economists have been grousing recently that the Fed needs to be more Pro-Active than the reactive mode they have been in. With the recent news of higher unemployment, the chances of a rate drop has increased marketly. Whenever the jobless rate rises, inflation worries usually lessen.
Steps are being taken to turn the economy around. If my memory serves me right, the Government currently in power during an election year really does not want a recession economy. As Bill Clinton said in past elections... "It's The Economy, Stupid."
So... take heart everyone... there just may be some relief coming a bit sooner than many of us had previously thought ! And for us... the sooner it happens... the better.
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For a quick look at homes currently on the market, and news of many new home builder bargains... please visit Karen Anne Stone's website at www.NewHomeHuntersOfTarrantCounty.com . Karen Anne may also be reached at (817) 929-3400.
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Karen Anne's New Home Hunters DFW is the Primary Marketing Source for New Homes throughout all of DFW. If you're looking for a New Home.. Get the Most Home for Your Money... call Karen Anne and save!
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