This is a very common question I get from people these days. Finally, I found a video which makes it very clear for people and it’s from none other than Suze Orman. Now, regular readers of this blog know that I don’t always agree with her, but this time she’s hard to disagree with:

What the market gives the market takes away. As you can see the 30 year mortgage rate is almost back to where it was earlier this year (2008). The ride back up has been very volatile, with two and on occasion three rate changes on any given day. Sometimes the changes have been in the [...]

The Federal Reserve cut the key federal funds rate today by 0.50%. It is now 3.00% (which makes prime = 6.00%).  Here is a brief snippet of what the Fed said today: Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the [...]