More Fuel for the Financial Fire, but Good News for Mortgage Rates
http://news.yahoo.com/s/ap/20080929/ap_on_bi_ge/wachovia_citigroup
This morning’s announcement regarding Wachovia is sure to add worry fuel to the inferno which is the financial market right now. However, it’s important to remember that your money within Wachovia will not be harmed by the recent events. Citigroup will be taking over deposits. Many thanks to Scott Meldrum of Countrywide who just published a great update on the mortgage market given the latest events. We have seen a massive drop in stocks this morning leading to good things for mortgages and bonds. The 10 year treasury has dropped from over 3.8% to the mid 3.6% range in early trading. Mortgages have improved by almost 1 discount point, equating to about .25% in rate reduction.
This week the roller coaster will continue with the headliner being the $700 billion bailout plan to be announced hopefully sooner rather than later.
If you have specific comments or additions, don’t forget you can always make comments on these blog posts. We love to get your opinions. – Andy
