Rate Update for July 14, 2008
The Federal Government had a busy weekend dealing with ailing financial firms. Fannie Mae & Freddie Mac saw there stock prices fall by over 50% last week as investors expressed concern over the two firms’ large mortgage portfolio. The Treasury pledged to back to two companies should investor confidence erode further. This is good news for mortgage rates in the long-term.
On Friday Federal Regulators seized the troubled financial thrift Indymac Bank in what is the 2nd largest bank failure in US history. The news renews fears over the financial system and may help mortgage rates in the near terms because of investor appetite for safety.
Watch today’s you tube video to learn what we’ll be watching for this week.