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Yesterday’s Federal Reserve benchmark interest rate cut wasn’t met with quite the enthusiasm the Fed may have hoped–but it likely will inspire a few positive economic outcomes. (And it probably made Reserve Chairman Ben Bernanke feel a little bit better about the recent New York Times article that questioned his aggressiveness). Wondering what the rate cut means for the average consumer–and for you? Analysts expect the following changes: Adjustable-rate mortgages: Borrowers with variable-rate mortgages will see the biggest difference, Keith Gumbinger, vice president of mortgage rate tracker HSH Associates, told USA Today. Home equity loans–which usually are half a percentage…

In a surprise move today, the Federal Reserve cut the benchmark interest rate by three quarters of a percentage point–the largest single reduction since the Fed began using the rate as the main monetary policy tool about 18 years ago, according to Bloomberg. The Fed Board of Governors also approved a 75-basis-point decrease in the discount rate today, bringing it to 4 percent.  The target overnight lending rate dropped to 3.5 percent from 4.25 percent. Although a rate cut was widely anticipated this month, the Fed wasn’t scheduled to meet until next week–and hardly anyone expected one this big. The…

In the past week, surveyors and a large property sales Web site announced separate findings that showed U.K. home prices had dropped, indicating the country’s real estate boom finally may be over–and that British housing could soon echo the painfully prolonged U.S. housing decline. That news–along with announcements of stumbling in the financial services sector and at housing industry-related companies like Wolseley–caused minor panic. As a result, stocks fell; the U.K.’s benchmark FTSE 100 Index dropped today by the largest amount since the 2001 Sept. 11 terrorist attacks. Which is why maybe it’s time for a little good news about…

It’s a new year, which always prompts reflection about the year before–which may explain the recent abundance of "state of the housing market" news articles. While some contain things we’ve heard before–the industry is down, the end of the slump is unclear–a few articles paint an interesting picture of the housing decline’s status–and the echo effect it’s having on other parts of the economy. Two notable picks: From Mortgages to Other Meltdowns: The focus on the U.S. mortgage industry’s questionable lending standards–which secured loans for many homeowners who couldn’t afford them–prompted industry-wide reform last year; and now, according to an…

Breaking news: Both President Bush and Federal Reserve Chairman Ben Bernanke today gave support for an economic stimulus plan to prevent the U.S. from sliding into a recession, MSNBC reports. Embarrassingly old news: The country desperately needs an economic injection–and has for quite some time. It looks like we’ll be getting it–through a rate cut that seems to be almost a done deal and a to-be-determined governmental package. Bernanke "again pledged to aggressively slash a key interest rate as needed to bolster an economy that is weakening under the strains of a severe housing slump and credit crisis," according to…

Several prominent building organizations are trying to encourage green building and design–but is green building already a big focus for today’s builders? Or are the promotional efforts not even close to enough? The current level of green design chatter is more than we had a year ago, that’s for sure. And it’s what the industry wanted: Just look at the reaction to the U.S. Green Building Council (USGBC) LEED for Homes  guidelines. In early December, the USGBC released the final version of its green housing design framework, opening up a whole new sustainable world. For years, LEED procedures have served…

New home sales fell to a 12-year low in November, a statistic that strikes fear in some–and makes others start salivating. A number of investors and homebuyers have been waiting for prices to bottom out so they can start snatching up deals. But before we all get ready to circle foreclosed and discounted properties like sharks hunting for chum, consider that housing busts don’t always bring housing bargains. Home prices had more than doubled by the end of 2006, The Wall Street Journal reported recently; an eventual correction was likely almost impossible to avoid. And yet, those big bargains some…

Friday’s blog touched on commercial real estate and the shopping center conundrum: Too many new stores and too little consumer spending. But, as it turns out, malls aren’t the only commercial buildings suffering from the economic slowdown. Enter: The waning workplace. Yes, that’s right, the office has become more than just a clever NBC comedy–it’s a commercial real estate crisis, according to some sources. Retail centers in areas that saw some of the largest housing boom price and property increases–and some of the decline’s biggest drops–have fallen on particularly hard times. Office space isn’t fairing any better. California Dreamin’ (Of…

For much of the year, commercial real estate held its own as the residential sector slid into despair. However, recent signs indicate commercial might be hitting a rough patch: And it’s starting at the epicenter of American excess–the shopping mall. According to commercial real estate market research firm Reis Inc., the vacancy rate at shopping centers whose main resident was a big-box retailer or supermarket hit its highest level in 2007 in four years, Financial Week reports. Like so many aspects of the housing decline, the rising commercial vacancies were something we probably should have seen coming. As the housing…

Speaking today for the first time since the Fed’s last meeting, Federal Reserve Chairman Ben Bernanke implied a further rate cut might be en route. U.S. stocks bounced up midday Thursday on anticipation Bernanke’s comments would suggest more rate cuts–but stocks faltered after the actual remarks were made as investors struggled to interpret what they meant, according to MarketWatch. To be fair, Bernanke’s comments were–as usual–a little vague. In a speech to the Women in Housing and Finance and Exchequer Club in Washington, D.C., he basically said the Fed was concerned about oil prices, housing issues and other threats to…