Fed Hits The Nail On The Head! Chops Prime Rates To Zero And .25%! Now It's Time For Builders To Come Alive

摘要

In Mid-December 2008 Ben Bernanke and the rest of the board at the Federal Reserve took a double-headed axe to their prime rates and cut them to zero and .25%. And in so doing they hit the nail on the head when it comes to solving the obvious problem for the nation's economy - - and that is revitalizing the slumping housing industry. As we have stated numerous times in this column, if you don't get housing healthy the U.S. economy is not healthy nor is that of many of the developed nations around the world. What the lower rates are bound to do is to bring colossal pressure on mortgage lenders to cut their rates to the points that will drag about 1.5 million home buyers from their lairs and into the street to buy homes. There's no reason whatsoever to have home mortgage rates higher than 4.5% and in some markets they should be a lot lower than that. Once the sale of both new and existing homes floods back to normal we will see the U.S. economy flooding back to normal. It's already working. Within a day after the Fed cut mortgage rates they hit their lowest point in 37 years.