The Federal Reserve cut both the Federal Funds Rate and the Discount rate by 3/4% yesterday. While the market was expecting a full point cut, the market still reacted positively. The Dow Jones Industrial average closed up over 400 points in brisk trading. The Fed hinted at future rate cuts while most of the nations economists believe we are in the midst of a recession.
The impact on real estate and the housing market has yet to be seen. Conforming loans are looming around the 5.5% mark, meaning that here in Orange County a 30 Year fixed loan for up to $729,750 can be had around 5.5%, while Jumbo loans, those above that level continue to be more difficult to obtain and are averaging somewhere near 7% for a 30 year fixed.
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