Well, the stock markets have reached a level not seen in over 5 years. And the bottom is yet to be seen. The chance of a Fed bailout for the BIG 3 seems more and more unlikely, which is sending consumer and investor confidence down, down,down. The Fed now projects unemployment to jump from 5 year high now at 6.5% to over 7.5% by next year.The Fed continues to hint that the key interest rate will be cut again. The next cut could be 1/2 point which would bring the rate to a level not seen in many years. It is currently holding at 1% and the Fed doesn't really have much more room to drop. The Nation is looking at "deflation"---that's a term that I really haven't even heard before with so much focus on recession and depression. Prices have been dropping rapidly in an effort to get consumers to spend again. But, this actually is exacerbating economic instability which would lead to lower stock prices, lower corporate profits and most importantly, LOWER INCOMES.

So where is the brite spot? Mortgage pricing is also dropping!! The 10 year TNOTE may break a 52 week low today. Early trading is suggesting that the 3.25% yield level will be broken as premarket levels hit 3.29%, down from last weeks level of over 3.70%. Current rates are now at 5.625% for 30 year terms while 15 year terms are at 5.5% and the 5/1 ARM is trending at 5.375%. For a cost of 2pts, the 5/1 can bought down to 4.5%. These rates haven't been seen in over a year.

Oil prices, home heating oil and gas prices are also dropping at huge rates.How's this for a statistic-Americans drove 11 BILLION less miles in September than the same time last year.

THIS IS THE TIME TO BUY OR REFINANCE. Of course the catch 22 is that folks must qualify, but the Fed is making attempts to make this happen, it just doesn't seem to be happening quick enough for most serious buyers or refinance candidates.

As always, I welcome an opportunity to help my real estate colleagues with their clients. I specialize in Federally sponsored products which with Government insurance, may be just the ticket for your clients purchase or refinance. Please reach out to me to see how I can help you.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR MORTGAGE TRANSACTION.