The feds lowered the interest rates 1/2 percent on September 18th to 4.75, then they lowered it again a 1/4 point of October 31st to 4.50%  This is a federal funds rate which directly effects the prime rate adn trickles down quicly to mortgage rates.  Home sales should boost by better home loans.

So what’s this all mean?

There are a lot controversial opinions floating around in the news about this new rate decline.

Are we headed for a recession?  Generally speaking, a recession is a prolonged period of time where the economy is contracting. During a recession, you will most likely see consumers spending less money and saving more, a subsequent decline in the stock market, a rise in unemployment, and a decline in real estate prices. The idea is that the economy has to have periods of contraction after years of expansions. From 1991 to today our economy has been constantly growing.
Respond to this post and let us know what you the consumers think, Are we headed for a Recession?