On the heels of already deep interest rate cuts, the Federal Reserve on Tuesday dug even deeper.  The central bank cut its federal funds rate down from one percent, to a range of between zero and 0.25 percent.

"It's a pretty good relief," said Arthur Sterbcow, president of Latter and Blum Realtors.  Sterbcow says the cuts inherent perks include a future lowering of credit card interest rates and the chance for current and potential homeowners to lock in lower mortgage rates.

"We had interest rates this afternoon about 4 and 7/8s for a 30-year mortgage which is almost unheard of," said Sterbcow.

Tuesday's cut represents the tenth time the Federal Reserve has cut its rates in the last 15 months.  But with the rate now at a historic low and so close to zero percent, the federal government has few options left if the recent cut doesn't produce the kind of results people are hoping for.

"It may sound funny, but the good news was Katrina," said Dr. Ivan Miestchovich, director of the Institute for Economic Development and Real Estate Research at the University of New Orleans.

Miestchovich says the storm may have largely spared the metro area from getting caught up in some of the nation's worst lending practices. 

"Much of the worst of that lending occurred starting in 2004 all the way through 2006," said Sterbcow.  "Well in 2005 in 2006, were more concerned with how do we get people back into some basic housing situation, how do we begin rebuilding the city."

The news is promising for Evelyn Morel of Metairie, who has been trying to sell her three-bedroom home for the last month.

"I'm hoping it will entice people," said Morel.  "Anytime less money is coming out of their pockets, they're more likely to invest so lets hope it gives them incentive."

That said, the metro area continues to feel its share of the economic pinch.  Miestchovich says while home prices have remained constant, home sales are down about 23 percent from last year.  And on the Northshore, Miestchovich says new construction has fallen as much as 60 percent from last year.  Home prices, he adds, have also dipped on the Northshore between 4 and 6 percent.  Sterbcow, however, predicts the recent rate cut could help change course in the metro area.

"I don't think there is anyone that won't tell you there's a light at the end of the tunnel," said Sterbcow.  "The question is how long is the tunnel -- and no one is smart enough to give you that answer."