Goldman Sachs: Rate Cut Getting More Likely End of '07; Beginning of '08
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An economist interviewed on CNBC explained that the slowdown in housing nationwide, has started to spill into consumer consumption. As a result, he said that a rate cut is still not on the table for the FED currently. However, he said that it is getting more likely that a rate cut could occur in late '07 or early '08.
What does this mean for home buyers? While prices may be coming down, they are not falling fast enough to offset the increasing interest rates. Buying power is becoming increasingly diluted. Even if a rate cut comes at the end of the year, it isn't likely to prompt a return to the economic atmosphere of the last two years where getting a loan was very easy.
An economist interviewed on CNBC explained that the slowdown in housing nationwide, has started to spill into consumer consumption. As a result, he said that a rate cut is still not on the table for the FED currently. However, he said that it is getting more likely that a rate cut could occur in late '07 or early '08.
What does this mean for home buyers? While prices may be coming down, they are not falling fast enough to offset the increasing interest rates. Buying power is becoming increasingly diluted. Even if a rate cut comes at the end of the year, it isn't likely to prompt a return to the economic atmosphere of the last two years where getting a loan was very easy.
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