an easy prediction

I predicted on Friday that today (Monday) would be an interesting day.  I’ll admit, that was a safe prediction and it definitely has been interesting. Here are a few of the events taking place today.

First, the housing bill did NOT pass.  Lawmakers are scrambling to try to save the bailout plan, but it does not look good at the moment.  Ironically, the Bush administration’s proposed bailout plan was supported by about 60% of the House Democrats versus less than a third of the House Republicans voted for the bill.

This was not good news for Wall Street.  Investors were counting on the bailout plan to pass, and yet stocks were still down around 400 points on the day.  When news broke that the plan might not pass, stocks  instantly plummeted — down as much as 700+ on the day.  There has been a slight rebound, but stocks are still off more than 500 points.

Mortgage backed security bonds have also endured an eventful day.  The trading range on the day has been at 128 points with bonds being as much as 113 points up on the day and 15 points down on the day.  As of this post, they are sitting around 40 points up.

Also, Wachovia is no more.  The nation’s fourth largest bank now belongs to Citi. I wonder if Wachovia’s collapse had anything to do with their MTA loans?  Wachovia should have listened to my colleague who writes The Mortgage Blog.

Again, what a day.  There is absolutely no telling where things will go from here.

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.