The financial markets continue to lose ground as stocks free fall as concerns that the U.S. mortgage market could totally collapse. The U.S. government has attempted to reassure the financial markets by indicating their desire to stand behind the largest mortgage agency lenders Fannie Mae and Freddie Mac. Despite this recent statement, the financial markets have continued to struggle. When Indymac bancorp was taken into receivership at the end of the week, new questions surfaced as to the viability of a number of large regional banks. Financial stocks have lost fifty to eighty percent of their face value for a number of the worlds largest financial companies as investors continue to fear the worst is yet to arrive. Internationally there are large investments that have been made into the U.S. housing market which was often viewed as a stable investment. Financial companies could struggle for the next two quarters or until their is a renewed confidence that the housing markets have finally started to turn the corner. The good news for home owners and home buyers is that mortgage rates remain very attractive.

7-15-2008©LowRateMortgage.com

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