As expected the Federal Open Market Committee voted to cut the fed fund rate by 25 basis points to 4.25% today. Central bankers were a little wimpier with their discount rate cut – clipping the rate by 25 basis-points rather than the 50 basis points many analysts had anticipated. The Committee only made a few noteworthy changes to their post-meeting statement. The Fed acknowledged that, “the deterioration in the financial markets has increased uncertainty surrounding the outlook for economic growth and inflation”. Policymakers went on to say, “The committee will continue to assess the effects of financial and other developments in economic prospects and will act as needed to foster price stability and future economic growth.” No need to get out your secret decoder rings here – it’s all straightforward. The Fed has very clearly left the door wide open for future cuts in early 2008 if economic conditions warrant. That’s sweet music to the ears of fixed-income investors. This event should be considered a mortgage market neutral development and a support of steady to fractionally lower rates and modestly higher home values for quite some time.
What does this mean to you for financing in the Vail Valley? Rates on luxury primary and second homes are still very low and very accessible from lenders that truly understand this market. This type of availability flies in the face of many news sources you may hear, but the news for high-end buyers has been good for several months and took a substantial move forward today. Call me to find out just how low rates are and what you can expect as we move into the first quarter of 2008.
Kevin Randel
Senior Mortgage Planner / Branch Manager
(970) 343-3800 Phone
(970) 343-3804 Fax
Luxury Mortgage Group - Vail, Colorado Branch
97 Main Street (at Riverwalk)
2nd Floor, Suite W-207
Edwards, Colorado 81632
Kevin Randel is a seasoned Vail Mortgage Planner and Luxury Financier. With fifteen years of mortgage banking experience, Kevin has made an exceptional name for himself in the Vail Valley. To begin a relationship with Kevin, please utilize the contact information above.
Tags: · Colorado · cuts rates · discount rate cut · federal reserve · mortgage · vail ·
Posted in Federal Reserve (FED) · Mortgage Industry News · National1 Comment
1 response so far ↓
I guess the key is always using a good Loan Officer with their fingers on the pulse of the industry, and is tapped into a wide range of lenders. How does this look for investment property?