Fed Cuts Funds Rate Again

 

For the seventh consecutive meeting, the Federal Open Market Committee (FOMC) cut the Fed Funds Rate, this time reducing it to 2.00%.

 

Lowering the Fed Funds Rate makes it less expensive for banks to lend to one another, which could make funding more readily available for consumer loans, such as adjustable rate mortgages, home equity lines of credit and credit cards.

 

Many believe it may, however, be the last rate cut for some time.

 

The Fed's statement made it clear that it is tending to two different fires right now; on one hand stoking the economy to keep it from slipping into a deep recession, while also dousing the flames of inflation as the costs of oil, food and other commodities begin to burn out of control.

 

We'd love to hear your feedback.  Have any of the previous rate cuts made any noticeable difference to your personal financial situation?  Have you seen lower interest rates on your credit cards, or is all of this rate cutting news not really making any difference at all to the average consumer?  Use the comment link below and tell us what you think.

 

 

 

Vacant Homes for Sale Hit a New Record High

 

The percentage of vacant homes for sale in the United States set a new record high in the first quarter of this year.

 

The Census Bureau report released recently shows that 2.9% of U.S. homes — excluding rental properties — were vacant and up for sale, compared with 2.8% in the fourth quarter of 2007. It was the highest quarterly number in records going back to 1956.

 

That works out to 2.28 million properties, up from 2.18 million in the same quarter last year.

 

The Census Bureau's report also said that the U.S. homeownership rate remained at 67.8% in the first quarter, down from a peak of 69.2% at the end of 2004.

 

The National Association of Realtors also reported recently that sales of existing homes also fell in March, dropping by 2%, with prices declining on a year-over-year basis by 7.7%.

 

 

 

The Subprime Crisis: A Humorous Look

 

Everyone knows the sub-prime mortgage crisis is serious, but today, we thought we'd try to lighten things up a bit and bring you a funny look at the whole mess.  John Clarke and Bryan Dawe are satirists. They stage interviews for the Australian news networks. Their commentary is biting and hilarious.  In this case, Clarke and Dawe take on subprime lending. They provide a perfect explanation for bad-banking practices. You’ll love it!

 

 

We hope you enjoyed seeing a little LIGHTER bit of news today.  Tell us what you think.  Leave us your comment below.  We'd love to hear from you.

 

 

 

Identity Theft: How to Stop It

 

Identity Theft is a crime so common that if it hasn't happened to you personally, you probably know a victim. So why are so many people still being victimized? Money Editor Stacy Johnson takes a closer look in this video. (Runs 1:36)

 

Have you been a victim of identity theft?  Know someone else who has?  Tell us about your experience…we'd love to get your feedback on this topic.  Just use the "comment link" below to sound off on this delicate topic.  Don't worry, your email address will never be published on our site to protect (at least that much of) your identity.

 

Pricing Your Home to Sell

 

Pricing your home is one of the most important items when choosing to sell your home and doing this wrong can be a costly mistake. You have to consider more than just the price to do this properly. The condition of your home, average market time for your area, availability for showings and the competing homes can all play a big role in choosing the proper price.

 

To accurately determine the right price for your home you need to find current prices for comparable homes in your area, as well as find recent comparable sales in your area, and know the demand for housing in your area.

 

Here are some helpful steps to help you select the appropriate price when selling your home:

Step #1: Measure Your Home

Measure your home against similar homes in your area that have recently been sold or currently are for sale.

 

Step#2: Compare Features

Find what features either make your home stand out against the comparable homes or maybe appear not as attractive. Items such as square footage, number of bedrooms, number of garage spaces and lot size can make a big difference. Buyers will be comparing your home to these others, so it's a good idea to do so yourself.

 

Step#3: Cosmetic Fix-Up's

Determine what cosmetic fix-ups you can complete to make your home more appealing than the competition but without spending too much. You don't want to invest money you will not recoup when you sell your home. This will highly increase the marketability of your home.

 

When Pricing Remember:

The right price is usually within 5% of the market value. If you select a price that is too high the home will have little interest and few showings. If the price is too low there will be many buyers and you will miss out on potential profit.