The Federal Reserve commented on the troubled economy but still kept the Fed Funds Rate unchanged at 5.25%. The Feds noted that Wall Street Turbulence such as Hedge Funds closing, Main Street Credit problems, and a nationwide housing slump pose increasing risk to the economy.  The Feds are still concerned about inflation so they have decide to hold the Fed Funds Rate Steady rather than lower rates to help bail out the slumping housing market which is a drag on the rest of the economy

The Feds have kept this key interest steady for almost a year after raising it for two straight years to fend off inflation.  In turn commercial banks prime interest rates also stayed the same at 8.25%.

The Feds are scheduled to meet again on September 18th where analysts believe the Feds will keep the Fed Funds rate the same again at 5.25%.  Economist and investors now think that the Feds may lower rates near the end of the year if the economy shows signs that it is slowing down or if inflation nudges lower down toward 1.5%.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713