Housing Predictor Forecasts Fed Needs To Cut Rates More
The Federal Reserve Board of Governors needs to quickly cut interest rates further in order to stop the U.S. housing market slow down from worsening and avert a national recession, according to a new report by Housing Predictor.
The Fed finally acted to cut the discount rate by 50 basis points, which should equate to a half point cut in mortgage interest rates to help the U.S. economy, especially the nationís ailing housing market. But the Fedís step to cut the chief bench mark rate is already too little too late for many American homeowners.
A record number of homeowners in the millions are facing foreclosure or at least the threat of losing the roof over their heads. The crisis has exploded into the greatest foreclosure epidemic since the U.S. Savings and Loan Fraud Crisis in the late 1980ís and threatens to worsen and produce the worst housing crisis since the Great Depression.
The Fed acts to maintain a balance of the national economy in order to avert economic down turns and hold off inflation. But the overall economy in the U.S. has already been damaged by the weakening U.S. housing market. Prices are declining in the majority of real estate markets, and too many Americans have used their homes as piggy banks to borrow against them.
The discount rate cut which equates to a half point rate cut in interest rates may be the first step in a long series of rate cuts the Fed is on to help improve the ailing U.S. housing market and further strengthen the U.S. economy. The Fed left open the door in wording with the announcement of the rate cut that it is open to further reductions.
The additional turmoil caused by the lack of mortgage funding for many loan companies and the resulting credit crunch with troubles on Wall Street has led lenders into a path of chaos, and threatens to undermine the entire mortgage loan business as we currently know it, according to Housing Predictor analysts.
Housing Predictor forecasts more than 250 local housing markets futures in all 50 U.S. states and regularly updates it forecasts and information. Search for homes, including foreclosures and get the latest on your markets forecast at Housing Predictor.
To find out just what the Fed needs to do to help save the U.S. economy from falling into a recession and help avert a worsening housing crisis visit http://www.housingpredictor.com
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