SOURCE: USATODAY

The new rate cut from the Federal Reserve hopes to prevent a recession.

The Federal Reserve cuts short-term rates when it wants to boost the economy. It lowers the target for the federal funds rate. This rate cut lowered its target rate for fed funds by three-quarters of a point, from 4.25% to 3.5%.

The lower the interest rate, the easier, and less expensive it is for businesses and individuals to borrow money. Lower rates mean there is more money to lend. Companies find it easier to get commercial loans for new factories and trucks. As companies expand, they can hire workers. That also stimulates the economy.

Lower rates also help boost the housing market. Lower mortgage rates mean more people can buy houses.

Homeowners are a huge engine of economic growth. And that's why the Fed is so worried about the housing slowdown. When you buy a house, soon you're buying a lawnmower, drapes and a replacement furnace.

Read full report »

SOURCE: The New York Times

There may not be a major turn around in commercial real estate investing throughout most of 2008.

With the continuing credit crisis and weakening economy, there isn't a lot of hope that 2008 will bring some relief to most real estate markets in the US.

There is going to be a greater downside risk in the next year than the commercial real estate markets have faced in over two decades. This is according to the "Emerging Trends in Real Estate" report by PricewaterhouseCoopers and the Urban Land Institute.

That said, there are some areas in the country and some markets that will continue to perform above the national average.

Read full report »