Homeowners to refinance after rate cut

AUSTIN (KXAN) - National Association of Mortgage Brokers President Marc Savitt is in Austin from Washington D.C. to meet with members of the Central Texas Association of Mortgage Brokers. The meeting comes as Fed cut its target interest rate.

"This is a wonderful opportunity for first time home buyers to take those new low sales prices," said Savitt.

The group discussed various issues, and legislation impacting the mortgage industry including the Federal Reserve's decision to slash its target interest rate to nearly zero. Jeremy Joyner is an Austin homeowner hoping to fit into that category.

"In my case, I am able to save quite a bit of money, because I had a high interest rate," said Joyner. Joyner is not the only one who could cash in. Americans trying to buy a house or finance a car loan could benefit as well.

Wall Street opened Wednesday with investors cheering the Fed's record rate cut, and its promise to keep rates low for a while. Still, Treasury Secretary Henry Paulson urged investors to be cautious.

"I don't think there's any single action that we can take that's going to be a silver bullet and get us through this problem quickly," said Paulson.

Analysts said an upturn in the economy is still months away.