in a nutshell .....

The stock market took it's biggest pounding ever, the stock market rebounded, the bailout was introduced, the bailout was defeated, the bailout was re introduced, the bailout passed.....Jobs losses are the worst in 5 years....Washington Mutual runs out of money, Wells Fargo buys Wachovia, Bank of America buys Merrill Lynch, all of us buy AIG, oil goes under $100, oil goes over $100, oil goes under $100 again and on and on and on.......

Many are now speculating the Fed will cut rates up to .75% later this month, if not before. You would think this is good for mortgage rates but that is not always the case. The MBS ( Mortgage Backed Securities ) market controls the appetite to buy mortgage paper.

Given the bailout passed today in Congress coupled with a Fed rate cut, it could bring back the appetite in the MBS markets and spur mortgage refinancing - which this country desperately needs. Did the Federal Government make the right moves? We will all see next week and maybe even a preview later today. One thing for certain, we are witnessing history before our very eyes. Have a great weekend....

                       MARYLAND MORTGAGE EXPERT