On the heels of Monday's announcement with Citigroup receiving an additional $20 billion through the Trouble Assets Relief Program, it's been yet another busy day.

The Federal Reserve announced today that it will purchase up to $600 billion in mortgage backed assets from Fannie Mae, Freddie Mac, Ginnie Mae and the Federal Home Loan Banks. In an added effort to stabilize the economy, the central bank also announced the backing of consumer debt securities up to $200 billion that will include student, auto and credit card loans as well as loans backed by the U.S. Small Business Administration.

• Question: So how does this affect you?
• Answer: Lower mortgage interest rates!

Shortly after today's news, I began receiving emails regarding the lowering of mortgage interest rates. I decided to be proactive and send emails requesting rates from my lender contacts. As of this post, the best deal received for a 30 year fixed conventional loan was 5.50% with zero points and origination fees.

The trickle down to the consumer was immediate today. The DOW closed at 8,479.47, +36.08 from yesterday. I hope Wall Street gets a little more excited tomorrow before stuffing their bird.

©2008 Debbie Small, Long & Foster. All Rights Reserved - "It's been a busy week so far, and it's only Tuesday!"