Loans : Mortgage : Finance

We have poor credit and trying to repair it; however we want to purchase a home by the end of the year. Will it adversely affect my chances of getting a home loan if we take out a consolidation loan to kick start the credit pay offs?

Why did the Fed decide to change interest rates? What specific economic events caused this change? I am writing a paper and one of the questions calls for specific events that would explain why the Fed decided to lower interest rates recently. I need some good examples. Links would be appreciated… Thank you!