Home About BlogArizona.com Contact Us  |  Advertise on BlogArizona.com  |  Login

BlogArizona.com - the ORIGINAL Arizona Real Estate Blog

      Everything Arizona...
               Everything Real Estate...
                        Everything in between...
BlogArizona.com - the ORIGINAL Arizona Real Estate Blog
BlogArizona.com offers discussions on a wide variety of subjects, but focuses on Arizona and real estate.  The articles  posted here are contributed by various working professionals.  Their insights and experiences will inform, educate, challenge and entertain our readers week after week.  Some of the best reading on blogs often comes from reader Comments!  We encourage you to use the 'Comments' feature to join discussions and interact with both our Contributors, and our other readers.  We do require that you first review and accept our 'Comment Rules' in order to preserve the quality and integrity of this blog.  Also be aware that all visitors are subject to our Terms of Use.

We put the 'REAL' back in real estate!

« Arizona Wants Change Too! | Main | Selling Your House? Don't Take the Curtain Rods When You Move. »

Tuesday, January 22, 2008

Subprime Mortgage Problem Goes Global: Federal Reserve Makes 'Emergency' Interest Rate Cut

Ben Bernanke and the Federal Reserve made an 'emergency' rate cut to the key interest rate this morning, rather than waiting until their next planned meeting at the end of January.  The .75 basis point reduction in interest rates comes amid global economic fears.  The Asian markets have been down sharply in recent days, and European markets have followed (although they're not down as much as the Asian markets).  The fear is that America's subprime mortgage problem is now damaging the global economy.

Fortunately, the US stock markets were not trading yesterday due to the Martin Luther King holiday.  But DOW futures were down over 500 points until the announcement of the Fed's rate cut early this morning.  The DOW (futures) has since recovered by a couple hundred points, but it still looks like today will be a bad day for the stock market (which is already down for the year).  I guess we'll see when the markets open in a few minutes.

Just remember, it's only a paper loss until you cash out!

Visit Shannon Hubbard's Home Page     Written By: Shannon Hubbard

Great American Realty, Inc.

Cell: (480) 695-6672
Email me

Posted by Shannon Hubbard, AZ Realtor & Computer Guru on January 22, 2008 | Permalink


Well this has decreased mortgage rates which could help the struggling real estate market...

Posted by: AZ | Jan 25, 2008 4:21:16 PM

yes its affecting everyone not just in US


Posted by: RK | Jan 30, 2008 6:56:19 AM

Hey, as an agent in the Palmdale, Lancaster area of the Antelope Valley here in California, I have reviewed this post and have think that todays (1/30) drop in interest will shurly help those with adjustable loans.

I think we are going to see the U.S. stock market jump tomorrow AM due to this decrease.

To see more infomation about the Palmdale, Lancaster area of the Antelope Valley visit my statistics page at wwww.gockelgroup.com/charts.htm

Posted by: Don | Jan 30, 2008 9:34:42 PM

The Federal reserve bank needs to drop the interest rates, maybe back to 1%. Once the economy stabilized, the federal reserve bank need to increase the rates gradually (not like they did before, a quarter point every time they meet).

Posted by: Jay | Feb 1, 2008 6:21:36 AM

What a difference a week makes. Not much to the positive. I was listening to the CEO of one of the lenders of jumbo loans speak this AM after they had a good last quarter. He was saying the interest rate reductions have not caused the financial institutions to ease up on their lending. Until they loosen up, the lowering of rates will have no effect on loans and therefore real estate.

I believe I also heard that another of the European financial institutions was in trouble. It is my opinion that until the institutions get there books right and be open about their situations, thing are going to remain very tight

Posted by: Nightwatch | Feb 5, 2008 8:41:43 AM

This is only the tip of the iceberg, banks even in China are feeling the effects of this

Posted by: Chris Heath | Feb 9, 2008 3:17:46 AM

The comments to this entry are closed.



TrackBack URL for this entry:

Listed below are links to weblogs that reference Subprime Mortgage Problem Goes Global: Federal Reserve Makes 'Emergency' Interest Rate Cut:


      Advertise on BlogArizona.com!

Equal Housing Opportunity

     Home  |  Archives  |  Login

  © BlogArizona, LLC 2005
      All Rights Reserved

     Terms of use  |  Disclosure