This ARTICLE On The Feds Rate Cut First Time Interest Rates Have Be Lowered In 10 Years Was PUBLISHED On July 31st, 2019

As expected, The Federal Reserve Board announced it has lowered its benchmark interest rate by 0.25%.

• The announcement by the Feds makes it the 5th time in the past 25 years where they changed from raising to lowering interest rates at the central bank
• In the past four instances, the Federal Reserve Board has never lowered interest rates
• During the 1995 to 1998 timeline, the Feds did make nominal cuts but not significant
• This was done to fears of a downturn in the economy
• In the 2000 to 2007 timeline, the Feds did begin cuts in fears of a recession and to stimulate the economy
• The last time The Feds Rate Cut was back in 2008
• Back in 2008, interest rates were cut to almost zero percent due to the 2008 Great Recession
• The zero percent rate was held for a period of seven years

In this article, we will cover and discuss The Feds Rate Cut for the first time in 10 years.

What Does The Feds Rate Cut Mean To Consumers

Federal Reserve Board Chairman Jerome Powell announced the Feds Rate Cut at 2:00 PM on July 31st, 2019.

• Powell announced The Feds Rate Cut of 0.25 basis points
• The news sent the Dow Jones Industrial Average lower to negative territory
• Lower interest rates by the Federal Reserve Board means a lower cost of borrowing money
• Generally, lower interest rates by the central bank mean lower cost of borrowing on credit cards, auto loans, and mortgages

There is mixed emotion by industry experts on The Feds Rate Cut. The Feds are concerned about a potential recession due to global trade wars that may impact the economy.

Rate Cut When The Economy Is Doing Great

What Does The Rate Cut Mean For The Housing Market

Mortgage Rates normally follow interest rates. Mortgage rates are now at a 3-year low with par rates today at 3.75%. Today’s interest rate cuts have already been factored in today’s mortgage rates. The housing market has been hot for the past few years. Home prices have been increasing with no signs of any slowdown. Due to rising home prices, both the Federal Housing Finance Agency and HUD have increased conforming and FHA Loan Limit for the past three years. Conforming Loan Limits is capped at $484,350. FHA Loan Limits is now at $314,814. The Department of Veterans Affairs (The VA) recently removed caps on VA Loan Limits. Mortgage Rates are expected to fall in the coming months which makes refinancing very attractive to homeowners. There seems to be a major inventory shortage of housing nationwide. Lenders are thriving with both purchase and refinance business. Record low unemployment numbers, great economic numbers, and the lenders introducing new mortgage products to the marketplace is fueling the housing market.