The following is a report I recently received from Mortgage broker Cathy Russell.

Happy Monday!  If you thought last Monday was wild on the news from Fannie and Freddie, the headlines that lead us into this week are even crazier.  First, Mortgage Bonds are up sharply, which should lead to better home loan rates. 

Let’s begin with more fallout in the financial sector.  Lehman Brothers is done after 158 years, thanks to their exposure to sub-prime mortgages.  And another casualty that was narrowly avoided was Merrill Lynch, which is being acquired by Bank of America; again this is all due to their greed and exposure to the risky mortgage business.  Also on the ropes is insurance agent, AIG, as they try to raise cash quickly to stay afloat.

Now…what does that mean to us?  It’s a time to look for opportunities.  Pricing will be at its best level in some time, homes are at much more attractive prices, TERMS TO PURCHASE ARE FAR MORE FAVORABLE THAN THEY HAVE BEEN and the forecast could get even better.

Remind your clients that these drops in rates don’t last forever and should be taken advantage of if they make sense.  GREED KILLS!