In a mixed week of news, perhaps the most important outcome is that mortgage rates remained at attractive levels:

• Fed Chairman Ben Bernanke conceded there was a possibility that the economy was in recession
• A provision to give bankruptcy judges more latitude to ease mortgage terms appeared headed for defeat
• Housing sales posted a rare rise, even as prices continued to fall
• 30-year mortgage rates remained little changed for the second week in a row

As much as the above might seem a mix of good news and bad news, overall it translates to a decent environment for home and mortgage shoppers.

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In the latest move to both stabilize financial markets and shore up a flagging economy, Ben Bernanke and the Federal Reserve took dramatic action on March 18th, cutting interest rates by 0.75%.

This move is part of a growing patchwork quilt of government economic initiatives which have emerged since year-end. That quilt includes:

• Three separate Federal Reserve rate cuts
• A sweeping tax rebate program
• Extraordinary measures to provide liquidity to financial institutions

The maddening thing about economic policy moves is that it will take months to know how they will pan out. However, while Washington and the heartland wait to see what the results of these stimulative measures will be, one group that should not be waiting is mortgage shoppers. For anyone looking to refinance, and especially for prospective home buyers, the best time to act might be the present.

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Bernanke’s rate cut has not dramatically cut mortgage rates. Fact is 30-year fixed-rate mortgage rates actually went up instead of down. People have expectations that the cut will help turn the housing market around, but this isn’t so. Rep. Luis Gutierrez, D-Ill., asks Fed Chairman Ben Bernanke why mortgage rates are going up, even though money is cheaper.

To learn more read:
Fed Interest-Rate Cuts Fail to Lower Borrowing Costs
Fed Cuts Discount Rate, Lends More to Avert Meltdown
Mortgage Rates and the Fed - Get it Straight !
Fed’s rate cut won’t directly affect mortgage rates