WaMu shares crumble

Washington Mutual, the largest U.S. savings and loan slashes dividend, cuts jobs, plans a massive stock offering, and prepares to leave the home loan business.

Washington Mutual has major problems.   They have announced over 3000 layoffs in their mortgage unit. 

Federal Reserve is will announce changes to interest rate policy at 2:15 pm ET today. It is expected that the Fed to drop rates 1/4% and maybe even 1/2%.  The market is still volatile because of gyrating stock prices and general inflation concerns.  If the short term rates do drop, it may be considered inflationary, and that will not help mortgage interest rates.  When the Federal Reserve drops interest rates, the mortgage rates do not necessarily follow.