The Federal Reserve cut the key interest rate yesterday by a quarter point, this is the second reduction so far this year. The central bank lowered the key rate to 4.5 percent in an effort to stimulate economic activity and keep the country from slipping into a recession. The rate cut came at the same time the government announced that the US economy grew at a better than expected 3.9 percent rate in the July September quarter. Even though economists expect that number to slip for the next quarter, it is still good news for the overall economy of the United States.
Even though the key rate is not tied into mortgage rates, they have dropped to their lowest level in a few months. The lower rates across the board should help to get buyers off the sidelines and into the game of buying real estate.

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