The Federal Open Market Committee held an unscheduled meeting on Tuesday . Thank goodness for the timing of MLK day this year, as a federal holiday. The Fed was able to see the Asian markets imploding on Monday and were able to pre-emptive take action, rather than being behind the curve.
The WSJ’s neat interpretation is called Parsing The Fed .
Investors are betting that the Fed will drop rates  another 50 basis points at their next meeting next week.
We may see a mini-refi boom in the coming months, but I am skeptical we will see a surge in sales activity across the country as a result of lower rates. The problem still remains with the credit markets and its unlikely for housing to recover anytime soon unless the relationships or price/risk is fixed.