News Afternoon Drive Time
WCBS-AM
September 18, 2007
3:00 PM - 04:00 PM
KELLY WALDREN reporting:
This is Kelly Waldren.
Mr. BOB MOULTON (President, Americana Mortgage Group): It's a signal that the Fed recognizes that there's a problem in the housing industry.
WALDREN: Bob Moulton, President of Americana Mortgage Group of Manhattan, calls the Fed's half-point reduction a welcome surprise and a move that will immediately help homeowners carrying home equity lines of credit.
Mr. MOULTON: Home equity lines of credit, which have grown, you know, tremendously over the last eight years or so will come down a half a percent.
WALDREN: Which means an immediate decrease in monthly payments. Moulton says the decision also will have a trickle-down effect on mortgage rates because the cut in the Fed funds rate is leading to a rally in the bond market, which will help first mortgages. Kelly Waldren, WCBS 880 News.