According to Donald Kohn, a top Fed official, the Fed will give serious attention to cutting rates again at the Dec 11 meeting. As of this date we have seen a 3/4 of a point drop in rates and still inventory is increasing and the foreclosure rates are going through the roof. No doubt, only to get worse because we have so many ARM's beginning to reset.
His remarks sent the stock market up over 300 points on the possibility of a rate cut to keep the economy from slowing down, seems the credit tightening is now slowing economic activity. Generally, rate cuts take 6-9 months to better economic activity.
NAR's LAwrence Yun doesnt predict any major who said low mortgage rates and job growth should keep sales from falling. Personally, I think we have quite a ways to go. It takes a long time for peoples perception to change and as of now that perception is to wait for more price decline and possibly lower rates. Not yet stabilized in my opinion.
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