Fed Slashes Rate to 0.25-0%

By:: Bill Rice - MortgageLoan.com

Today the Federal Reserve slashed it's key rate to a floating rate between 0.25% and 0%. This puts the Fed in uncharted, historical territory. Although Fed rates are not tied to mortgage rates, this dramatic move combined with the Federal Reserves promise to buy more mortgage-backed securities will push down mortgage rates. The US government seems to be moving aggressively on discussions of moving mortgage rates down to 4.5%, or lower according to many new analyst reports.

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