The Fed, also known as the Federal Reserve Board, cut interest rates a half percentage point this week to combat fears of coronavirus and potential economic slow downs. The emergency cut is the first cut done since 2008 between meetings and is the Fed's response to the sliding markets and fears of the coronavirus raising risks for U.S. and global recessions. "Fed officials moved to prevent a pullback in credit availability to households and businesses that could amplify any slowdown in the U.S. growth, especially if steps to mitigate the spread of the virus - school and business closures, canceled public speaking events and social behavior broadly speaking - curtail spending and depress hiring."
What does this mean for homeowners?
Interest rates will continue to fall for the foreseeable future and it may be time to look at refinancing or if you're on the fence, time to purchase and secure a historically low rate.
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Source - WSJ