The Federal Reserve has taken significant action in the last few weeks due to the credit crunch. They've made an unexpected move by cutting the discount window rate – which is great news. If you're not sure of what the discount rate is, it's the interest rate charged to commercial banks and other depository institutions on the loans they receive from their regional Federal Reserve Bank's lending facility. The Fed's decision to cut this rate provides stability in the financial markets and this can be good for all of us. Even better, interest rates have come down from recent highs. While this is good news, the market is experiencing unprecedented volatility and changes could come at any time.
It's important to note that the discount rate is different than the Fed Funds Rate, which directly impacts interest rates that you pay for Home Equity Lines of Credit, credit cards, and automobile loans. Most importantly, the discount window rate cut does not directly impact mortgage rates.
Borrowers need to act swiftly and decisively in today's climate. If you are looking to Buy a San Antonio home for sale now is a great time. Especailly since the San Antonio real estate market has shifted from a sellers market to a buyers market.
For more information about San Antonio real estate visit www.SAHomes411.com. It's your Information source for San Antonio real estate.