Federal rate cut should lead to low mortgage rates

The Federal Reserve cut the federal funds interest rate to between 0
and .25 percent on Tuesday, and CNBC’s Diana Olick said this might help
lower mortgage rates. Susan Wachter, a professor at the Wharton School
of the University of Pennsylvania, said cutting the rate will allow
housing prices to reach a bottom, although it may take a while for
banks to start originating loans at lower rates. Olick said that to get
those cheap rates, buyers must have impeccable credit and more money to
put down on the loan.