FOCUS Federal Reserve cuts to interest rates benefit banks, not consumers
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feds, Mortgage Interest Rates, rate cut March 21st, 2008WASHINGTON, Mar. 19, 2008 (Thomson Financial delivered by Newstex) — The Federal Reserve’s rate cutting campaign is benefiting banks and financial institutions, but the interest rate declines have yet to pass through to the average American.
‘If you are waiting for real interest rates to bail us out, its probably not going to happen that way,’ said Bob Brusca of FAO Economics.
Even with the federal funds rate now at 2.25 pct, homeowners are seeing little relief as high interest rates on mortgages and declining house prices continue. Worsening the situation are banks, who are unwilling to loosen their lending standards. ‘They too can see the collateral in the market is getting less and less,’ Brusca said.
Tags: feds, Mortgage Interest Rates, rate cut
