The Federal Reserve cut the key rate by a half point this morning in an effort to free up credit between banks and for consumers. This should mean lower interest rates for home and auto loans. Home owners needing to refinance their ARM's have an opportunity to do so at great rates, and get it fixed. The lower rates and the deflated housing prices also make it a great time to be a buyer.
The rate cut was done in conjunction with the European Central Bank, the Bank of England and the Swiss, Canadian and Swedish Banks. The Chinese even hopped on the band wagon unexpectantly and lowered their bank rate and their bank reserve requirements. The whole world is trying to get credit flowing again and this probably won't be the last rate cut we'll see.
To read more about the rate cut, check out the New York Times article.
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