This week there has been a number of huge factors contributing to the recent decline in mortgage rates. The Fed has lowered interest rates by 0.75 percent and they have also bailed out Bear Sterns from collapsing.

The US economy is showing signs of panic as mortgage rates have been very unstable throughout the week.

For the second time this month the Federal Reserve has slashed key interest rates in hopes of stimulating the U.S. economy. Although the rate cut does not tie directly into mortgage rates, mortgage rates have been on a downward spiral for the past month.

Fed Rate Cut By 0.5 Percent: Federal Reserve Announcement Lowers Interest Rate to 3.0 percent hoping to remedy the U.S. Economy, which according to some analyst may already be in full recession.

The U.S. central bank Tuesday begins a key two-day policy meeting that many economists predict will result in another interest rate cut, to help boost the troubled economy and stop a sell-off in global stock markets.

Asian stocks recouped some of their steep losses of the past two days after market confidence received a shot in the arm from the U.S. Federal Reserve. But as VOA's Heda Bayron reports from Hong Kong, stock analysts say the markets may remain volatile despite Tuesday's U.S. interest-rate cut.

European stock markets appear to have rallied after the severe losses recorded when they opened this morning. Following news of continued falls on the Asian markets, Amsterdam's AEX lost five percent soon after opening.

Fed rate cut of .75 percent sunned the markets this morning. The Federal Open Market Committee has decided to lower its target for the federal funds rate 75 basis points to 3-1/2 percent.

We have been watching the growing pessimism of small business owners over the past few months as seen through the NFIB's monthly survey. It now looks like the Federal Reserve is the Grinch that has stolen entrepreneurs' Christmas.

Federal Reserve Chairman Ben Bernanke, in a signal he is open to cutting interest rates, said the latest bout of turbulence in financial markets may put more strain on the economy.

How Fed Interest Rate Cut Affects Consumers and Lenders