JP Morgan to buy Bear Stearns? Get ready for a rough Monday!!

According to MarketWatch, J.P. Morgan Chase & Co. reportedly has agreed to buy Bear Stearns Cos. for $2 a share in a stock-swap deal.  Evidently the set price will be $2 per share. It appears that both boards have approved the sale and are trying to put it together prior to Monday's Asian market opening.

Get ready for a rough Monday. The markets will not like this. It has the possibility of sending Mortgage Rates much lower since they generally move in the opposite direction of the Stock Market. However, since Bear Stearns is a strong player in the mortgage industry, Mortgage Backed Securities might not like it either.

While it's curious that a couple of days after a Fed bailout they are selling at a bargain, the "loan" was for only 30 days. Who knows what pressure the Fed put on them for a quick resolution to stabilize the markets. It will be interesting to follow.

Since we ended Friday in a nice position for Mortgage Rates, it might be prudent to lock rates tonight if you have a lender who allows weekend locks. If not, get ready for an interesting day!

Larry Morris is a Certified Mortgage Planning Specialist (CMPS) with Equipoint Financial Network in Newberg, Oregon. He specializes in financing for Senior Citizens and Rural Properties. He can be reached at larry.morris@equipoint.com. His website is www.PDX-Mortgage.com.

This material is copy protected 2008 by Larry Morris, Mortgage News that Matters. All Rights Reserved His opinions do not necessarily represent the views of Equipoint Financial Network.