http://stlouisrealestatevoice.com/2008/03/23/st-louis-real-estate-market-watch-march-22nd-2008/ All you want to know about St. Louis Real Estate! Tue, 02 Dec 2008 07:56:13 +0000 http://wordpress.org/?v=2.6.1 http://stlouisrealestatevoice.com/2008/03/23/st-louis-real-estate-market-watch-march-22nd-2008/#comment-86 Bryan Thu, 27 Mar 2008 22:25:53 +0000 http://stlouisrealestatevoice.com/2008/03/23/st-louis-real-estate-market-watch-march-22nd-2008/#comment-86 Slight misconception, but not unexpected. The Fed's rate cut is almost meaningless for borrowers as banks increase their spreads (the difference in what they pay to borrow money vs. what they charge to lend) in an attempt to rebuild cash reserves and keep pace with losses in other areas of the country. The prime rate has yet to keep pace with the drop in the Fed's rate, and there is absolutely no factually based rationality to believe it will this time. Slight misconception, but not unexpected. The Fed’s rate cut is almost meaningless for borrowers as banks increase their spreads (the difference in what they pay to borrow money vs. what they charge to lend) in an attempt to rebuild cash reserves and keep pace with losses in other areas of the country. The prime rate has yet to keep pace with the drop in the Fed’s rate, and there is absolutely no factually based rationality to believe it will this time.

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