January 17th, 2008 3:03 PM by
It was another terrible day on Wall Street as stocks dropped nearly 307 points today. This was the largest one day drop since November and now puts the DJIA at a 10 month low. We are close to dropping below Dow 12,000, when not that long ago we were above 14,000.The drop in the stock market has pushed a lot of money over to bonds and is putting our mortgage interest rates at lows not seen in over 2 years. The interest rates were last this low around June of 2005. This may also be a reason that Fannie and Freddie may be allowed to ease their lending guidelines.
Even though we have had great rates, lenders are still shutting down and going out of business. According to the Implode O Meter, we lost another one today. Aurora Loan Services has become a casualty of the mortgage meltdown. They were a division of Lehman Brothers.
Slide on over to my blog at Minnesota Mortgage Musings to see more links.