Credit Markets Recovering!
Finally, we begin to see recovery (at least in the credit markets!)
I know it’s getting cooler outside (and I love it), but are you feeling the warmth coming from the financial markets? The thaw of the “Credit Freeze” has begun! Sure, the thaw is slow, but certainly the worst already occurred back on Wednesday the 15th. That’s when the FED put the first 250 billion of the rescue plan to work!
The Fed is also buying commercial paper now (“commercial paper” is basically business loans). This will bring the LIBOR down some more. So, if you have an adjustable rate mortgage based on LIBOR, the news is getting better. That reminds me to tell you, if you are at all concerned about an Adjustable Rate Mortgage you have, please give me a call and we’ll go over the particulars. Just a couple of weeks ago, I gave someone the good news that her interest rate is going to go down when it adjusts. I wish all my calls were that much fun to make!