The Federal Reserve today cut the Fed Funds rate by .5 percent to 4.75%, the first rate cut since June 2003. The full press release is available here.
Note that the .5 percent drop doesn’t mean interest rates necessarily will drop by the same amount. Interest rates move due to supply and demand factors and to some degree a cut already was reflected in the rates. However, most were expecting a .25 cut so some downward movement can be expected – it just may take a while.
Is this good for the housing market? Bad? Will it not matter a whit? What say you?[tags]real estate financing, interest rates, Ben Bernanke[/tags]