192296 Resource 178438 178984 178982 1197502691445 1197513245052 Controlled Flagstaff Mortgages Volatile but Lower Now Than The Beginning of the Week

Fed Announces only a 1/4 point rate improvement.

<p>The markets were looking for a holiday treat yesterday by way of a 1/2 point Fed cut in the Discount Rate.&nbsp;&nbsp;When the news arrived that the cut was only 1/4 point, stock traders threw a tantrum.&nbsp; But this morning, a surprise gift arrived. The Fed announced a plan to help inject $40 Billion dollars into the markets by opening a new action facility.&nbsp; This means that the Fed will lend money to banks for shorter terms and these banks will be able to borrow against a wider range collateral.&nbsp; The 28-day term for these funds will help ease some pressure in the money markets and increase liquidity in the frozen short-term commercial paper market.&nbsp; This may also&nbsp;narrow the higher spreads in Libor rates and thereby improve our rates for home loan ARMS.</p><p>Lots of market movers will be in the news tomorrow. Remember that the market sentiment can turn very quickly as was evident last week.&nbsp; We will watch for signs of inflation in the reports because that will result in additional spikes in the mortgage interest rates.&nbsp; </p> 10 application/xml false credit markets home loan interest rates mortgage mortgage interest rates Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727) 127.0.0.1 127.0.0.1 aheitland 24.121.32.9 false true false false true 178975 false false true false false false true 178438 blog blogsite/BestFlagstaffHomes/web