Quick Recap Of Today's Market News

There are a few items I just wanted to briefly touch on.

Mortgage Rates
Mortgage rates have have spiked a little bit from the lows we saw last week, but as always it should turn back around again in time for people to lock in before they start the cycle again! Just refer to our rates section on www.pmg-inc.net.

Stock Market
The stock market as I type this is up 471 points so if this holds true it is a great day. The problem we have been having is sustaining these rallies. We have been having 1 great day followed by 4 bad ones, etc.. Not a good recipe.

White House Warns Banks
One problem we have blogged about and in the past is the common trend of banks hoarding cash. Ever since turmoil hit, banks have been taking advantage of their lower borrowing costs and opportunities to shore up their balance sheet instead of using these funds for their intention, lending! Lending is how these institutions make money and they are hoarding the cash instead. The new trend is taking the bailout funds and trying to use it to acquire lesser banks! Again, not the intention of the bailout. I think it is a good sign of the government voicing their displeasure. The problem is that very few strings were attached to the bailout money. We will have to keep a close eye on what develops! We really need lending to pick up and rates to come down in order to help the housing market!

Keep a lookout for our Newsletter that comes out tomorrow. This will summarize these stories and much more. If you are not currently on our distribution list and want to be, please email us.

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