The big question for many is - will the Federal Reserve cut rates on Halloween? Based on the huge amount of recent write offs from some major players in the mortgage world - I think it will happen. The folks at Wall Street believe that we could see a 1/4% reduction on Wednesday. There are also predictions that a rate cut could have a negative impact on crude oil prices.
On a less serious note, some people are searching for Vegas Odds for a fed rate cut. Seems my earlier post came in pretty high in the search engines... I was right about a cut but wrong on the amount. They say you can be on anything in Vegas - I just can't find the odds online.
I have a history of picking the underdog. Mac instead of PC (Mac was and still is better) , Beta instead of VHS (beta was really better but still lost the war), Kiwis over the Swiss in Americas Cup (Swiss dominated). The list could go on and on but I digress.
Now for the important part - how will a fed rate cut affect the Outer Banks Real Estate Market Conditions? Typically a reduction in the fed rate will trigger a small jump in 1st mortgage rates but the markets are not really following standard procedures lately. My guess is that we will not see a big jump in mortgage rates. The good news for those that have Home Equity Lines of credit - a rate cut will slightly lower monthly payments. Even though it is a small break - any break is good in the off season on the Outer Banks.
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