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Mortgage Market Snapshot - 1/22/2008

1/22/08 Market Snapshot
 
Foreign weakness in the stock market and increasing recession concerns in the U.S. caused the Federal Reserve to make an unprecedented .75 percent reduction to both the Fed Funds Rate and the Discount Rate. Their goal is to loosen credit, lower mortgage rates, stimulate spending and investment, reduce short term interest rates and restore confidence to our economy. A reduction of this magnitude has not been seen in 24 years. Further underscoring the concern for our economy is the fact that this change occurred between FOMC meetings. Many market analysts expect a further reduction at next weeks FOMC meeting. Meanwhile, the stock market reacted quickly this morning as it lost as much as 400 points shortly after the open. Treasury yields have rallied and mortgage prices improved as well.

Print | posted on Tuesday, January 22, 2008 10:28 AM

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