February 28, 2008

US to lower interest rates again

It looks as if the Federal Reserve is planning another interest rate reduction in an attempt to bolster up the failing US economy in the wake of the increase in oil prices and shaky finances it is the only logical thing to do.

However, this maybe not enough to prevent things from getting worse, as the housing market is already showing signs of weakening even further than last, when the sub prime problems began. Although this seems to have passed now, there is an air of caution surrounding the whole area of finance, so even though the interest rates may go down, the actual credit process has become a lot harder for borrowers wishing to refinance.

It is likely that when this goes ahead, the Bank of England will follow suit too, this will make the mortgage situation a lot easier, although again the application process has also been tightened up.

Source [Yahoo News]