Tuesday, October 7, 2008

The Fed, Global Markets, and The Impact On Real Estate - Should We Expect A Rate Cut Before The FOMC Meeting?

Renewed rally cries for an intermeeting, globally concerted effort, rate cut by the Feds before their two day meeting at the end of the month (October 28th and 29th). Bernake signals a cut may be on the way.



The drumbeat only got louder as the DOW dropped over 500 points in today's trading session. Today's loss pushed the DOW to a 5-year low.

If the Fed does cut rates again, what does that mean for real estate? If you have home equity, car loans, business loans, or any loan tied to the fed funds rate, your money will get cheaper.

In regards to real estate, the cheaper cost of money will spur more real estate investors to begin looking at real estate as a viable investing option again.

In consideration of the numerous monetary policies being implemented, I think one has to wonder if the housing bottom is just around the corner.

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