Daily Real Estate News  |  October 28, 2008  |   Fed Expected to Trim Key Rates Again
The Federal Reserve is expected to lower interest rates before the end of their two-day meeting, which starts today.

If they do, this will be the second time in a month. The Fed is expected to lower the rate by either half a percentage point to 1 percent or, conservatively, make a smaller quarter-percentage reduction to 1.25 percent.

The prime rate, which is used to set home equity loans, certain credit cards, and other floating rate loans, is now at 4.5 percent. These rates will fall commensurately based on the size of the cut. Mortgage rates aren’t so directly affected, but may slip as other rates decline.

Source: The Associated Press, Jeannine Aversa (10/28/08)