What does the Feds rate cut mean?

On Tuesday the Feds lowered the Federal Funds rate by half a point. What does it mean?

For Consumers: (who are not buying or selling right now.)

• Now may be a good time to refinance.


• ARM (Adjustable Rate Mortgages) rates may become somewhat lower.


• Home equity credit lines will drop a half point at beginning of next month.

For Buyers:

• Now is an excellent time to buy.
  
• There are deals to be had.
• Interest rates are good (but don’t expect them to drop significantly overnight because of the Fed Cut - though some loan products did drop a 1/4 point Tuesday.)

For Sellers:

• The market for Sellers is not out of the woods yet.
  
• Real estate prices continue their gradual decline.
• Inventory remains a concern (it could take more than 2 years to sell what’s on the market now).
• Sell now and take advantage of being a Buyer on what you buy next.
• Holding out for a price that doesn’t exist will cost you more in the long run.