The Fed cut the interest rates for loans to banks by half a percent. This seems to have stemmed the drop in the stock market for the time being. It was a pretty big drop too, over a thousand points in the course of days, almost 10% of its overall value, finally something significant.

For homeowners this can be significant because this rate cut can trickle down to mortgage and other types of loans.

The biggest bugaboo the Fed worries about is inflation, it has a long institutional memory and they  live in fear of another round of stagflation like the one during Jimmy Carters administration. In all likelihood interest rates will rise over time.

Now is a good time with interest rates pretty low to fix up the house for the next 5-10 years. Now would be a good time to make your home a lot more energy efficient and easy to life in. The next few years could be a little rough on the pocketbook as energy prices fore a lot of other prices to rise as well. I just bought some milk and it is over $4/gallon now. Gack.