The Fed announced another 1/4% cut in the Federal Funds Rate at today's meeting citing continued weakness in the housing sector.  The Fed is doing its best to avoid an economic recession, which is at least in part due to the ongoing turmoil in the mortgage market.  Most major financial institutions have been forced to write-down billions of dollars in mortgage loans.  Consequently, investors are extremely weary of investing new money into the market, causing a liquidity crisis for many banks/lenders. 
This is the second time the Fed has cut rates in as many months.  Prime rate is now 7.5%.  Good news for anyone who is carrying a balance on their home equity line of credit or credit cards.  It will also put some needed positive news in our market. 

Business as usual for us here at National City.  Feel free to call me if there is anything I can do for you.


Pat Sheplee
Loan Officer
FNMC \ A Division of National City Bank
15400 Calhoun Drive Suite 100
Rockville, MD 20855
301-279-4697 Direct
301-580-7709 Cell
301-309-0240 Fax
<mailto:patrick.sheplee@ncmc.com> patrick.sheplee@ncmc.com