This has been a week of big stories and interesting changes within the Financial Industry and overall economy of the United States. Here are some links to articles regarding these stories.
JP Morgan takeover of Bear Stearns for $2/share.
Fed cuts Overnight Lending Rate to Banks by 3/4 Point.
Mortgage Rates (30 YR Fixed) hold steady despite cut.
Stocks are Rallying Today.
Obviously, it has been a week of newsworthy items. From takeovers to Federal Reserve Rate cuts, we continue to see the country and its leaders fight to stave off a Recession. But we need to keep our eye on a few items: Unemployment, Job Growth Rates, Consumer Confidence/Spending, and inflationary concerns. Still a tough road ahead.
The mortgage industry continues to see a tightening due to mortgage backed securities losses and the "credit crunch" that is largely affecting the ability of borrowers to obtain new loans or refinance old ones. Tomorrow, I will discuss the upcoming changes to Fannie Mae's guidelines that will affect interest rates for customer's based on credit score, as well as discuss PMI (one mortgage insurance company) and their response to the Stimulus Package.
Make it a great Thursday.