What is the consensus here? 1/4 or 1/2 point? Here is hoping for a 1/2 point cut for selfish reasons. I'm getting ready to lock into a new loan for a new home having the finishing touches done this week.

I'm guessing 1/2 point because the Fed usually overreacts and the news of record foreclosures has been the talk of the town.

Truth is the majority of the foreclosures won't be affected by any interest rate drop. Reason being, the housing market is still depressed and the people who are bailing out are in interest only loans which (for good reason) have been suspended. Even 5 1/2% 30 year fixed loan won't help someone who financed 110% with no money down at a 5 year adjustable rate.