For the first time in more than four years, the Federal Reserve has made it cheaper to borrow, and by an unexpectedly big margin. See article: www.bankrate.com/brm/news/fed/main-Sept2007.asp

I guess it took a near meltdown of the housing market and a real meltdown in the mortgage business for the Fed to FINALLY stop raising rates or holding them steady. All this fear on the Fed's part of inflation which might be fueled by things like rising fuel prices OUGHT to be offset by the decrease in home values, purchase price and the decrease in consumer confidence as folks in most of the US no longer feel "house rich".

Do read through the Bankrate article as it explains that not every decrease in the fed rate maps dollar for dollar back to lower mortgage rates but I predict this one is going to and pretty quickly - the whole industry - housing AND banking - needs the jump start.

By the way - if you're sitting on the fence about BUYING or REFINANCING. Get off the fence. If the economy shows ANY inflationary signs - look out - these low rates could go away quickly. In an interview promoting his new book Alan Greenspan's crystal ball outlooks much HIGHER interest rates going forward. So get out of that ugly ARM loan now and/or take the plunge on some of the real bargains out there right now.   Ann and I are blown away at what you can buy here now  - particularly on the water...