Early this year, the " FED " - FOMC (Federal Open Market Committee) again slashed interest rates 3/4 of 1 percent to 2.25%
This dramatic cut has followed price cuts of the same ¾ % on January 20th of this year from 4.25% to 3.5% and then again ½% the next day to 3%
In a span of less than 2 months the FED has cut rates from 4.25% to 2.25% 
The FED will announce this Wednesday if they will cut or leave interest rates alone.
The key rate they are talking about is the discount rate ; the rate banks borrow money from the FED.
This is not directly reflected in mortgage rates which more accurately reflect the Bond (US Treasury market).
Has it helped in Real Estate here in Metro Phoenix?? This drastic move by the fed has not had any significant impact on lower home Loan rates. However, Lower interest rates in other areas can allow consumers spend less on interest costs such as credit cards, car loans, etc.., leaving them with more of their income to spend on goods and services to stimulate the economy
Do we need further interest rate cuts?? FED Chairman seems to be on a cutting spree. However, it is unlikely he will continue to cut rates or keep cutting interest rates for the time being.
Interest rate management is a tricky game of allowing people to borrow (take on debt) to spend more to help an ailing economy.
In terms of real estate, we need could use further cuts to help a struggling real estate market as the 2% rate cuts have not impacted or significantly reflected in a drop in mortgage rates.
Are we headed to 0 % or ZIRP ?( Zero interest rate policy )
Click Here to read if ZIRP would help the Real Estate Market
thanks . - and I would love to hear your opinion on what you think the FED will announce on Wednesday and if you think we need further rate cuts to help the Real estate market and the economy overall.
I have mixed thoughts on what the Fed will do since it looks like we're headed for or already in an inflationary period which usually makes them increase rates, but housing and the economy are in a tough place which usually leads to the opposite.
I understand that further cuts are unlikely. The FED wants to keep inflation in check. It's also an election year, so I believe a lot of policy will shift into nuetral and coast to 2009.
CHRISTINE -Its going to be interesting to see what happens in this election year! Which candidate do you think will be better for our industry?