Jan 28, 2008

click to enlarge

Last week, the Federal Reserve ordered a three-quarter point reduction to its key rate, and Individuals and businesses are likely to see their borrowing costs drop even further as the Reserve weighs another interest-rate reduction.

Fed Chairman Ben Bernanke and his colleagues are scheduled to open a two-day meeting Tuesday afternoon to plot their next move on interest rates, and many economists believe the Fed will lower its key rate, now at 3.5 percent, by as much as one-half percentage point to 3 percent when policymakers wrap up their meeting Wednesday afternoon.

If that scenario plays out, commercial banks would be expected to lower their prime lending rate by a corresponding amount - from 6.5 percent to 6 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans. Should all this happen, then both the Fed's key rate and the prime rate would be at nearly three-year lows.

Log onto Hayden Homes Mortgage website to read how this additional borrowing power can help you. Fill out the online application to see what kind of financing you qualify for. Hayden Homes Mortgage experts can tailor the right finance package to fit your needs and put you in your new home.