The U.S. Treasury is considering a new, special dollar to be printed to help finance the housing bail out. Initial prints have been leaked to select media outlets. We were lucky to get our hands on the new design (h/t Graeme):
Last Week:
Mortgage rates stayed mostly flat to slightly higher last week as the markets essentially went into a holding pattern awaiting news on a government rescue plan for the financial industry.
Meanwhile, WAMU failed, Goldman Sachs got a huge (and expensive) infusion of cash, and Morgan Stanley did the same via Mitsubishi. All of which failed to stabilize the financial markets.
Most mortgage rates deteriorated by .125% by Friday.
This Week:
Now that there is a plan, it remains to be seen whether the plan itself (update: if it passes, which it didn't) will be well-received by the markets. Any broad sellof in stocks, or more fear driven flight to quality by investors, could help mortgage rates improve. Accordingly, rescue/bailout related news will dominate the markets this week.
As for the economic calendar, which still bears watching:
This Week's Detailed Economic Calendar [Barrons]
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On July 30, the president and Congress signed into law the Housing and Economic Recovery Act of 2008.This law made a number of changes to the housing and mortgage industry. One item that was rarely discussed is the effect that HR3221 has on reverse mortgages.
This very important legislation has been in the works for almost two years now. This is positive for the industry and most importantly to homeowners considering reverse mortgages.
Reverse mortgages have come a long way since 1961 when Nelson Haynes of Deering Savings & Loan extended the first reverse mortgage to Nellie Young, the widow of his high school football coach. It was an act of kindness that today continues to offer a helping hand to seniors in need.
Post from: Reverse Mortgage Loan Blog
