Fed Cuts Rate a Quarter Point, Banks Respond

The Federal Reserve cut the federal funds rate by one-quarter percentage point to 4.5 percent Wednesday.

In response, commercial banks, including Bank of America, Wells Fargo, and KeyCorp., announced that they were cutting their prime lending rate for certain credit cards, home equity lines of credit, and other loans by a corresponding amount, to 7.5 percent.

The decline in these rates generally also pushes down first mortgage and refinance rates.

For the full story visit Realtor Magazine
Source: The Associated Press, Jeannine Aversa (11/31/07)

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