Tuesday, January 22, 2008

January 22, 2008 Market Update

Mortgage and Treasury bond prices are rallying this morning in response the The Fed's surprise move to lower the Fed Funds rate by 3/4 of a point. This is the largest single rate cut since 1984. With the next Fed meeting just over a week away on January 30, today's action was a very unusual move, indicating the severity of the conditions in financial markets. In addition to today's cut, investors are also expecting another half point cut in the Fed Funds rate at next week's meeting. The Dow was down as much as 464 points earlier this morning, before bouncing back and recovering more than half of the losses. No economic data will be released today.

Wyatt Poindexter
Keller Williams Realty Oklahoma
(405) 417-5466