The Federal Reserve cut its key interest rate to near Zero, a one-percent point cut not seen since the 2008 financial crisis.
The feds also announced plans to buy $700 billion in government securities. The cut, the second this month, and the plan to buy securities are dramatic efforts by the feds to protect the country from a recession.
“Families, businesses, schools, organizations and governments at all levels are taking steps to protect people’s health. These measures, which are essential for containing the outbreak, will nonetheless understandably take a toll on economic activity in the near term” said Fed Chairman Jerome Powell to reporters in Washington Sunday.
The federal funds rate affects the cost of borrowing on everything from credit cards to auto loans.
The move makes it the best time to buy a house and take on a mortgage. This opportunity may not come back soon, maybe in years. Don’t wait if you are in the market for a home. Give us a call and we will help you find the right home. For more information, call 313-819-0101.