The Fed finally acted to cut interest rates by a half a point and help the U.S. economy, especially the nation's ailing housing market. But the Fed's step to cut the chief bench mark rate is already too little too late for many American homeowners.

A record number of homeowners in the millions are facing foreclosure or at least the threat of losing the roof over their heads. The crisis has exploded into the greatest foreclosure epidemic since the U.S. Savings and Loan Fraud Crisis in the late 1980's and threatens to worsen and produce the worst housing crisis since the Great Depression.

The Fed acts to maintain a balance of the national economy in order to avert economic down turns and hold off inflation. But the overall economy in the U.S. has already been damaged by the weakening U.S. housing market. Prices are declining in the majority of real estate markets, and too many Americans have used their homes as piggy banks to borrow against them.

The additional turmoil caused by the lack of mortgage funding for many loan companies and the resulting credit crunch with troubles on Wall Street has led lenders into a path of chaos, and threatens to undermine the entire mortgage loan business as we currently know it, according to Housing Predictor analysts.

The discount rate cut of 50 basis points, which equates to a half point rate cut in interest rates may be the first step in a long series of rate cuts the Fed is on to help improve the ailing U.S. housing market. The Fed left open the door in wording with the announcement of the rate cut that it is open to further reductions.

Housing Predictor forecasts more than 250 local housing markets futures in all 50 U.S. states and regularly updates it forecasts and information. Search for homes, including foreclosures and get the latest on your markets forecast at Housing Predictor.