With the recent interest rate cuts working there way down to you and I, many wonder what the effect will really be.
Here are some thoughts, but, as always, your prespectives are welcome.
The first immediate benefit will be seen in lower home equity line payments that are tied to the prime rate (also called Wall Street Prime, published daily in the Wall Street Journal or most any financial news site like www.Blooomberg.com ). Congratulations...your disposable income just went up (but don't be too quick to spend it!).
As banks now have a lower cost to borrow, some of that will trickle down to us in the months to come in the form lf lower interest rates on consumer credit. Lower rates on credit cards, even longer terms on interest free financing (just make sure you pay it off before that period is up or you're in for one heck of a bill!!) and 0% financing on cars to name a few.
Many analysts are predicting increased spending in home improvement as rates retreat. This has been seen in the small rally in stock prices for home improvement companies. As many people cannot sell, might as well make your place as comfortable as possible.
What are your thoughts?
I will later cover the anticipation of the financial stimulus package and it's affects. Anyone with insight on this, please share.
Best to all!
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