My Mortgage Lender source tells me. . . .

A Mortgage Broker I work with just send me an email and he expects the interest rates to come down, possibly as much as 1% after today's announcement that the head of Freddie Mac & Fannie Mae were being replaced with leaders from the business sector.

In his words . . .but we should see rates reverse and start to come down with the now direct guarantee of the government.

Up until now, the government has only quasi guaranteed the mortgages held by FNMA and Freddie Mac. This has made investors nervous in our current market. Interest rates have continued to remain stubbornly high, despite the fact that from a historical trend standpoint, we should be almost a full 1.0% lower on interest rates.

This could be a huge opportunity for your past clients to refinance, as well as make homes more affordable for current buyers (i.e. lower interest rates will allow for more affordable monthly payments). I'll keep you posted on how the markets react, but now may be a great time for a mail piece to your past database to inform them about the lower rates (if and when they come).

This should be good news for the housing market and we will wait and see how this plays out. Call with any questions!

This does sound like really good news but of course, maybe tomorrow or the next couple of days will tell. Let's hope he is right.