Fed Cuts Funds Rate Again

For the seventh consecutive meeting, the Federal Open Market Committee (FOMC) cut the Fed Funds Rate, this time reducing it to 2.00%.

Lowering the Fed Funds Rate makes it less expensive for banks to lend to one another, which could make funding more readily available for consumer loans, such as adjustable rate mortgages, home equity lines of credit and credit cards.

Many believe it may, however, be the last rate cut for some time.

The Fed's statement made it clear that it is tending to two different fires right now; on one hand stoking the economy to keep it from slipping into a deep recession, while also dousing the flames of inflation as the costs of oil, food and other commodities begin to burn out of control.

We'd love to hear your feedback.  Have any of the previous rate cuts made any noticeable difference to your personal financial situation?  Have you seen lower interest rates on your credit cards, or is all of this rate cutting news not really making any difference at all to the average consumer?  Use the comment link below and tell us what you think.

Gas Prices Continue to Spike

The average price of gasoline has jumped another 15 cents over the past two weeks to a national average of $3.62 per gallon of self-serve regular, according to a national survey.  That rise continued at virtually the same rate as the previous two weeks, and forecasts are, it will only get higher.

We'd love to hear what you think.  Do you think oil companies are just gouging us?  Or do you think it's wise to drop the tax on gasoline to help us consumers?  Use the comment link below to sound off on this gasoline price spike situation.  We'd love to hear your comments and feelings on this subject.  And don't worry, even though your email address is required to post a comment, that email address will never be published here for your protection.  So go ahead, tell us what you think about the high gas prices!

Existing Home Sales and Mortgage Apps Fall Again

The National Association of Realtors reports that total existing home sales - including single-family, townhomes, condominiums and co-ops - decreased 2% in March when compared to the previous month's sales.

Meanwhile, mortgage application volume continues to fall off weekly.  Over the past couple of weeks, application volume dropped by over 14% according to the Mortgage Bankers Association.

And although existing home sales and mortgage applications continue to show declines, conflicting sentiment seems to indicate that more people are positive about the overall economy than not.  Recent surveys show more American's feel they still can buy a home than those who feel they cannot.

What's your feeling now?  We'd love to get your feedback on exactly how you feel (overall) about the current economy.  Use the comment link below to give us your opinion.

The Real Estate Crisis: Congress Expected to Fail

An over-whelming majority surveyed say the U.S. Congress will fail in its attempt to solve the nation's real estate crisis.  That, according to a new poll conducted by Housing Predictor.

The online survey clearly indicated that Americans are fed up with Congressional failures, the government's stance on the nation's economic crisis and the White House.

Housing Predictor forecasts more than 250 local housing market futures in all 50 states, and regularly surveys visitors on real estate related issues, which are in the forefront of the national economic crisis. They also forecast the nation's top 25 real estate markets annually, the worst 25 markets and the nation's foreclosure epidemic.

Tell us what you think.  Do you think Congress will fail in its attempt to solve the nation's real estate crisis?  Click the comment link below and sound off.  We'd love to hear from you.

Consumer Sentiment: Plunges to a 26-Year Low

Consumer sentiment plunged to its lowest level in 26 years in early April, according to a report released recently by the University of Michigan/Reuters, as worries about the economy, unemployment and inflation deflated hopes for the future.

The U.S. consumer sentiment index fell to 63.2 in early April from 69.5 in March.  Sentiment is at its lowest level since March 1982.  Economists surveyed by MarketWatch were looking for an April result of 68.8.

Where is your "consumer sentiment" right now?  We'd love to hear from you on this topic.  Just click the comment link below and give us your feedback.