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    August 5, 2008
    Fed Rate Decision Expected Today

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    Today, at 12:15 pm Eastern, the Federal Reserve is expected to announce its latest interest rate decision. However, most expect interest rates to remain steady. In such cases, it is important to pay attention to what Fed officials say after the meeting, reports Mortgage News Daily:

    "The expected inaction doesn’t mean the market won’t be interested in
    the meeting’s outcome. On the contrary, interest will be as high as
    ever because of the uncertainty surrounding the wording of the policy
    directive," said Patrick J. O’Hare from Briefing.com. "We think there
    is increased potential that the market will perceive a comforting
    message that the Fed won’t be hiking interest rates anytime soon."

    What Fed rates affect

    Traditionally, Fed rates do not affect mortgage loans (those are more influenced by Treasury notes), but since the subprime lending crash last year, things have been a little different and unpredictable. Items more affected by Fed rates, though, include home equity lines of credit, auto loans and credit card interest rates.

    So if you have consumer loans, now is the time to work on paying them off — before interest rates start rising again.

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    Comments

    I think that there will definitely be a refinance boom with rates so low. Those home owners that did not fall victim to buying too much house or taking out the wrong kind of loan can definitely reap the rewards that the low interest rates bring. Especially with the government refi programs available, anyone with decent credit can take advantage.

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