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Ok, Fed Day is here! If the Fed lowers the rate another 50 basis points (.50), combined with the emergency 75 basis point (.75) reduction that the Fed made recently, it will be the BIGGEST rate reduction in history!! Will it solve our mortgage crisis? I say NO, not immediately. This rate reduction will not increase the values of homes until demand increases, which will take time.

The good news is that the reduced interest rate, in conjunction with the efforts to raise the "conforming loan limit" from $417,000 to almost $700,000 and the proposed FHA revisions, will help those who formerly could not qualify to purchase and refinance their homes, DUE TO A HIGH DEBT RATIO, to move forward.

Is the Fed's move enough? What else can be done to help homeowners who, on the one hand, cannot pay their mortgage and, on the other hand, cannot sell their devalued homes?