Rate Update September 19, 2008
Rates are unchanged from yesterday’s levels.
Mortgage rates do not know what to do after the government announced “bold” plans to shore up the financial system. This announcement leaked yesterday afternoon which is why the stock market has rallied over the past 24 hours.
Treasury Secretary Henry Paulson announced this morning that the government would work over the weekend to create legislation designed to restore confidence in financial institutions.
The main points behind the program can be seen at this link.
At this point we are going to shift our outlook to neutral until we get more details about the plan.