In an effort to revive the economy the Federal Reserve cut the federal funds rate today but a half-point (0.5%). This lowers the rate to 1 percent – the lowest rate since 2003-2004. The last time the federal funds rate was lower than 1 percent was during the Eisenhower administration in 1958.
Today’s interest rate cut was the second half-point cut this month. The last one on October 8, 2008 was in a coordinated move with foreign central banks.
This year’s economic weakness has created huge declines in the price of oil and other commodities. While many economists believe the country is in a recession, they also believe the recent rate cuts and other aggressive actions by the Fed will help prevent a prolonged downturn and help unfreeze the credit markets.
If these aggressive moves by the federal government are successful in thawing the credit markets, it will be great news for real estate investors who are having difficulty financing their real estate investments.
Real estate has been regarded as one of the safest investments for quite some time. However, despite the relative safety of 
In some of the worst housing markets in the country, deflation has reached double-digit proportions. While housing woes have spread around the country, California appears to be poised to rank among the worse. One of the primary reasons for this is the fact that in the last few quarters California has experienced the largest rate of deflating home prices. In fact, home prices in California have fallen to levels that have been unprecedented.
