Well…
- It doesn’t solve the massive financial losses, to the tune of billions, of financial firms that invested in mortgage securities that tanked
- It doesn’t solve the situation for home owners in or going into foreclosure
- It doesn’t loosen the tight lending standards making it hard if not impossible for many homeowners to purchase a new home
- It doesn’t solve the large inventory of unsold homes
The Fed rate cut doesn’t solve the damage done; it does, however, encourage borrowers who do qualify to get off the fence and buy. Rates may not drop this low for decades to come. Savvy homeowners understand this, so they are taking advantage of the long-term financial gains that low-rates provide.
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