Yesterday the Fed implemented two emergency rate moves in response to the continuing weakening of our economic outlook and the tumbling of the world markets. The Fed Rate and the Discount Rate were both cut by .75 bps bringing the Fed rate to 3.5% and the Discount rate to 4.0%.

So what does that mean to you the consumer? Fed Rates impact the prime rate, auto, credit card and home equity line of credit rates. First mortgage rates will also respond to a degree. The Discount rate impacts the cost to banks to borrow directly from the Central Bank, thereby making money less expensive to borrow for them. This can help banks increase profit by giving them cheaper money to lend for business loans,mortgage loans and consumer loans.

The market is still anticipating a further reduction in the prime rates of .25 bps to .50 bps, which will effect any loan tied to the prime lending rate; usually commercial loans, some consumer loans and eventually it will trickle down and effect mortgage rates.

Did this help? You bet it did, the Asian market has rebounded this morning. Will it continue to stimulate the economy? Only time will tell as it still appears investors have concerns about recession and global market stability.

Don't look at your retirement investments right now, they are most likely going down and you are losing money. This is the same thing that happened with 911, but people did recover.

Regarding the extra rebate this year for low to moderate income families; the Government is planning on having that in your pocket by the end of May or June according to the morning news. This rebate is expected to stimulate the economy as well and give people a little relief.

I'm curious to see how all this will affect the mortgage rates in the next few weeks. Of course my hope is that consumers will have more confidence and start buying homes and refinancing their current high rate mortgages and positioning themselves while the rates are low. Many people do not realize that they can do a streamline refinance if they have had a good payment history, a streamline requires no new appraisal and no income verification and lenders just put them through to give a better rate. Mortgage rates for a 30 year rate were as low as 5.625% APR yesterday, this was in the Northeast Region, generally they are lower out west and south, finally a rate we can live with.