The Veridian Blog

The Fed just annouced a somewhat surprising 75 basis point decrease in the Fed Funds rate, sending the target rate down to 2.25% - the lowest since late 2004, and totaling 300 total basis point since the apex of the liquidity debacle shook the mortgage world in August.

Most experts expected a 100 point decrease, especially in light of the Fed's recent aggressive moves with the Discount Rate.

Although holders of equity lines-of-credit and credit cards will immediately enjoy the benefits of lower payments, mortgage rates as a whole have yet to fall in like kind.  We confidently expect all rates to continue a downward trend for the next few days and weeks, otherwise, everything the Fed is using at its disposal will be for not.