I Told You So

I told you we would see a bounce in the stock market today...I told you.

And I watched the market tank all day long. I was thinking about the post I was going to write. I was going to appologize and say things like, "Don't listen to me," and "I frankly don't have any idea what I am talking about."

It only took a 600 point swing in the Dow to prove me right. Shares of financial companies soared. But what I think what really put the rally into high gear is that the Financial Times was reporting that New York insurance regulators were calling big banks to pony up about $15 Billion to shore up bond insurers.

Bond insurers have been in the news recently, basically called the next shoe to drop in financials. With some new money flowing in maybe the can actually avoid the pain the rest of the sector has seen.

Who knows.

I can tell you one thing. I have been getting plenty of refinance calls being that I do mortgages for a living. Rates are as good as they have been in the last couple of years. Trick is, can you qualify for those good rates.

If you are doing short term financing such as a 15 year fixed, no problem. But if you want to go longer and have less than 30% equity in your home, you better have good credit. I have detailed what is going on with Fannie and Freddie before.

By the way, I'm not writing for Nesteggr anymore. The link above is my last posting over there. I didn't get what I wanted out of the experience/site. I wish there had been better communication with those who started the community and just a better community. All the bloggers only seemed to care about themselves for the most part and didn't participate on anyone else's blogs. It was sad. But I did meet Zach Stocks and Curious Investor and I continue to read their sites. I have noticed that both Zach and Curious have both either cut back on or stop posting on Nesteggr. So I guess I'm not alone.

So I have gotten a lot of phone calls from the rates dropping, but not a lot of business. Who knows what the heck is going to happen. I do think that you are going to see rates for mortgage creep up a bit the remaining portion of this week. What will be really interesting is to see what the Fed has to say next week. If they cut again, what will the statement say? Since they would have cut 1% off in two weeks, I cannot imagine them stating they were going to stay aggressive.

If they signal a pause, which I think they have to, these rates we see today will not last.