The market has swung wildly since last week. Fed Day last Wednesday brought the expected .5% rate cut, bringing the Fed Funds Rate (the rate at which banks lend money to each other) to 1.0%. As consumers, this will affect and decrease Prime Rate.
Rates saw great improvements today with multiple changes for the better, bringing many loan programs and rates to the low 6% range.
And finally, a talking point on economic recessions: Although many people feel that we are already in the midst of a recession, the technical definition of one is two consecutive quarters of negative GDP. 3rd Quarter GDP numbers just came out and showed negative growth of -0.3%. (2nd Quarter GDP had risen 2.8%). So technically, we’re not in a recession, although I always found it amusing that we don’t know we’re in one until the numbers come out after the fact. Regardless, this is the first true report that validates the possibility of entering into a recession.
