A manufacturing report came out today that was weaker than expected, raising renewed talk that the Fed might cut rates later this month1.
What does this mean for you?
As rates have come down recently, now is a good time to look at doing a refi. If you can afford to wait, and signals continue to point towards another rate cut, I’d even suggest waiting out the next few weeks to see if the fed does indeed make a rate cut by month’s end. If you’re stuck in an ARM loan that is slated to reset in the next few months, maybe you should look at locking yourself into a long term 30-year fixed loan before the loan adjusts.
Dropping rates will certainly help out American consumers in dealing with credit and loan issues, however, as we continue to cut rates, confidence in the Dollar will likely decline further. While rate cutes may prove to save many consumers and homeowners, they may, in fact push foreign investors even further away from investing in our currency.
I continue to believe that we are headed for recession, and any moves that the Fed take now are simply too little too late.
Here are a few simple ways to plan for the possibility
1 – Be smart with your finances.
2 – Protect your home by locking in rates while they are low.
3 – Pay off your credit cards.
4 – Cut unnecessary spending.
5 – Learn to begin saving and investing.
All of these tips should be taken into consideration regardless of whether or not we do go into a recession. All are key ways in the long run to build your wealth and net worth.
Sources: Yahoo Finance – “Stocks Soar on New Hopes for Rate Cut”