grauteam mortgage update | 1.22.2008 | 30F 5.375% 15F 4.875%

Monday’s sell off around the world due to a lack of confidence in the US Economy and fears of a recession has resulted in the Fed making a move it hasn’t since 1984!  This morning the Fed cut the Federal Funds rate by an unprecedented -75bp to 3.50%.  This was the first interim meeting since September 17, 2001.  The futures market is still counting on a -50bp in the scheduled Fed meeting January 30.  It will be interesting to see how this plays out because there were some inflation concerns that are bad for bonds and the lower fed funds rate usually stimulates the economy. 

30 Fixed | 5.375% 5.475%apr15 Fixed | 4.875% 5.000%apr