198341 Resource 178438 178984 178982 1204137383477 1204145226005 Controlled Will the Fed Cuts Help Home Mortgage Interest Rates?

Bernanke's text is pretty dovish, as expected.

<p>The Federal Reserve will remain on course toward implementing additional interest-rate cuts, at least in the near term, although the journey has become more treacherous as prices are rising, the U.S. central bank's chairman said Wednesday.&nbsp; </p><p>Downside risks to economic growth remain the key focus of monetary policymakers, Federal Reserve chief Ban Bernanke told Congress.&nbsp; Inflation remains a secondary concern. If the markets agree, this is good news for home loan rates since inflation concerns have a negative impact on mortgage rates.</p><p>Essentially, the FOMC's strategy is to &quot;cut and hope,&quot; trusting that lower short-term interest rates will help the economy regain its footing, and that incipient inflation pressure will prove to be short-lived.</p><p>Remember that it often takes 6-9 months for a Fed action to filter its way through the markets and have an effect on economic conditions.&nbsp; </p><p>Currently home loan rates have improved every day this week.&nbsp; If you need to lock in the next month stay in close contact with your Mortgage Broker.&nbsp; The market is highly volitile so good advice is needed.</p> 9 application/xml false Bernanke statement Fed rates Federal Reserve statement home loan rates inflation monetary policy mortgage market mortgage rates http://blog.bestflagstaffhomes.com/public/blog/178438#194028 Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.1.4322; .NET CLR 2.0.50727; .NET CLR 3.0.04506.30; .NET CLR 3.0.04506.648) 127.0.0.1 127.0.0.1 aheitland 75.160.24.218 false true false false true 178975 false false true false false false true 178438 blog blogsite/BestFlagstaffHomes/web