Marc's Mortgage Matter's

Wow what a weekend - too complex to explain or go into details. In short the two biggest mortgage giants FreddieMac and FreddieMae needed major help period. The housing and financial markets were pummeled, punished and panicking. The Feds came in and saved the day. What can I say, unsure who will foot the bill but that's life. Those following for months know many of the issues that brought this about. Way too soon to tell what will follow. From what I understand long term the rates should stabilize instead of nearing 7% lately will hopefully move south, and it may get slightly easier to do certain loans. Too early to tell when and how but will probably takes months to come to some footing...to be continued!

The US Government’s takeover of the GSE’s does not change the basic economic outlook that many economists have. Yes, it should help the conventional mortgage market, which hopefully may lead to better things down the road, but basic forecasts for the US economy and Fed policy have changed very little. Goldman Sachs, for example, still expects Gross Domestic Product (the sum of all goods and services produced) to be stagnant into early 2009 and unemployment to increase. Accordingly, their forecast is for overnight Fed Funds to remain unchanged at 2%. Which means those HELOC's that you have will remain at low interest rate currently below 5% for most borrowers that took them out in the last 2 years or so.