The Federal Reserve cut its Fed Funds Rate yesterday for the first time in 4 years by 1/2 point.  In speaking with a couple of the lenders that I work with and trust the consensus is that borrowers waiting for lower fixed rate mortgages will probably be disappointed.  The opinion is that cuts in the FFR generally just don't translate into cuts in fixed rate mortgages. 

So who does this benefit?  According to these lenders, possibly those looking to get a lower rate via refinancing (possibly those trying to get out of an adjustable rate mortage).  Additionally those with a HELOC (home equity line of credit) or credit cards ties to the Prime Rate should experience a benefit.

Although Austin's real estate market is not suffering, it is clear that the US market still is and the rate cut was probably the appropriate course of action to tap the breaks on the skid, especially since the news was released yesterday that housing construction fell to a 12 year low and that the number of foreclosure filings reported in the US doubled from August 06 and are up 36% from July.