Federal rate cut should lead to low mortgage rates
December 19, 2008 02:03PM
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 help change the housing market and get to the bottom of housing prices, although it may take a while for banks to start originating those loans. Olick said that to get those cheap rates, buyers must have impeccable credit and more money to put down on the loan.