Earlier today the Federal Reserve cut the Fed Funds rate by a half percentage point to 4.75%, citing turmoil in financial markets as a threat to economic growth.
How will this affect real estate prices? Rising rates was one of the leading causes of the slow down. Lower rates makes houses more affordable to more people.
They say the darkest hour is just before the dawn. Just when you think things are at their worst is usually when they start to get better. Call me an optimist Ã¢â‚¬â€œ I think weÃ¢â‚¬â„¢re ready to turn the corner. The stock market got a 335 point boost today (DJIA) so obviously Wall Street is optimistic too. Next year is an election year. Remember Ã¢â‚¬Å“itÃ¢â‚¬â„¢s the economy, stupidÃ¢â‚¬Â? I predict another rate cut before November 2008.
Bottom line: itÃ¢â‚¬â„¢s a good time to buy real estate in St. John!