Fed Cuts Rates Significantly
The Federal Reserve Board has just announced it cut the key short term interest rate by half a percent, pushing the rate down to 4.75%. As a result, the prime rate has dropped as well to 7.75%. While the rate cut was widely anticipated, the degree to which it dropped is a bit surprising to some.
This key rate affects the cost of borrowed money for adjustable rate mortgages, credit cards and car loans. It also affects the rate of return for cash investors who are now seeing their yields drop by the same amount.
A full wrap up along with reactions from the blogosphere will appear at Easy Mortgages later today.
Original source here…