In deciding today to leave the Fed Funds Target Rate unchanged at 2%, the Federal Reserve’s Open Market Committee brought to an end a dramatic set of rate cuts which began September 18, 2007, when the rate was at 5.25%. The cuts were designed to increase liquidity and ease the credit crunch which developed following the failure of sub-prime loans and the loss of confidence in the mortgage backed securities market. Critics argue that the housing market really hasn’t been helped much by the cuts but that they have added to the inflationary pressures of higher energy prices.
The Fed today signaled that the next move for rates will be up. But it also said its outlook is unusually cloudy at this time.
Stay tuned.
Comments
You think the housing bust is bad now? Prepare for worse to come. BusinessWeek says national home prices could plummet an additional 25% over the next two or three years.
Richard -
NBR's Stephanie Dhue has done a number of reports on the housing crisis that you may find helpful to review. Here's one of them:
Homeowners Facing Foreclosure Are Getting Mortgage Workouts
You may also want to contact one of these agencies/organizations:
Department of Housing and Urban Development/FHA
Neighborhood Assistance Corporation of America
MY family is in a mess with sub prime with ocwen will there be any help for us our rate is around 14 on 260000 thousand being 6 months behind can any one help Richard