Lewis Poretz - - Maryland Mortgage Expert -

Made it through today ( Tuesday 9/30 ) with three price changes for the worse from numerous investors. The stock market rebounded nicely. I predicted more doom and I must say it was a pleasant surprise. Mortgage rates took a beating as investors left treasury bonds in favor of the stock market. Financials gained big time with the hopes of whatever is going to pass will open up lending.

I am not convinced of this. I am not convinced anything will open up lending unless the government guarantees the loans. I am not convinced today was not merely shrewed investors buying low and looking to dump at a profit. I just don't see any concrete evidence the economy will get better.

I see the market getting antsy tomorrow and ending up down.

Predictions anyone??

Maryland Mortgage Expert

If you are a realtor or mortgage professional and after today you don't feel an eerie wind of change blowing in very rapidly you don't have a heartbeat.......... Mortgage rates should be really, really low after today but they are not. Homes should be selling like hotcakes but there not.

Yes - there is an eerie wind blowing in and I for one don't like it. This week could be one for the history books. If you look at the past few weeks you have to think there are a few more major banks - Nat City and others - that are ready to pop.

Some experts are talking about the Dow hitting the 8000's by weeks end. Tomorrow could bring more panic to the banking sector. A bank that has one of those big runs on withdrawels could go from the safest rated bank to insolvency in one day.

Not sure what tomorrow will bring but one thing for sure - it will bring something! If you have equity in your house and plan on staying there for a while and will have the remote need for cash in the fuuture - TAP your house now!

Any predicitons on what tomorrow brings?

Ok - so the Fed and the US Goverment is helping out the big banks in order to control stability. Very cool. I bet these big banks appreciate this! I am certain the rationale behind this makes sense to the US and Global economies. I get this.....

But let me ask you this - what about me? What about the self employed middle class whose income is way down. What about the borrowers who always paid on time and are getting crushed now because the economy has driven their income down. What are you going to do for the people who can't make the payments anymore? What about the people who can't pay their taxes this year? What about the people who can't afford college for their kids nor qualify for a student loan? What about the huge numbers of us who were depending on those credit lines that have been fozen?

All this bailout talk is great stuff. But - What about me??

Mortgage rates are going to ...... there gonna..... I really think....honestly I am simply baffled with the low level interest rates are currently. I thought rate would be near the 8% range by now. It is just what the cycle does. Rates had been low for a while. The correction has got to be coming....

For years I was the go to guy in the office. I would get phone calls from loan officers all over asking me that question - should I lock or float?? I was that good at predicting movement. In the past few months I have been wrong many times. In today's mortgage lending environment rates could have major swings within the same day!

The big relief plan being ironed out this weekend by government leaders will have a big impact on mortgage rates by Monday morning I would assume. Which way rates are impacted is the big question! The goal is to open up money to the economy, specifically in the beaten up mortgage industry. I have not completed any real conclusions as to where rates are headed. I just can't convince myself either way. I would think I am like many others who are just taking a wait and see approach in this every changing whirlwind.

In the not so distant past a few things were a lock. My rule of thumb was this -- Bad news for the economy would have investors buying treasuries which in turn forced mortgage rates down. I have since thrown that proven method out the window.

Any predications where rates are headed next week? next month? Next six months?

Maryland FHA Expert

I have heard about the movie "Maxed Out" many times in the past but have never seen it until this evening. It is currently on Showtime. Everyone needs to watch this movie. I don't care if your rich or poor a great credit risk or on the verge of losing it all.

The movie demonstrates how corporate America and the big banks set up their clients by offering more and more credit to unsuspecting consumers. They discuss 28% + interest rates on credit cards, over the limit fees, late fees, under balance fees etc......

This movie was released in 2006. Did they ever predict what is going on in this nation this very second or what??

Any comments on this movie?? Maxed Out how much of a coincidence that as soon as this move is over and i start scanning the channels for something to watch, George W. appears on all the network channels telling us how America is on the verge of financial collapse..... Hang on to your hats people - when we finally get to the bottom we are in for a hard landing!!!

Maryland FHA Expert