It is believed there will be a Rescue Plan in place by Monday. This will free up liquidity for lending. It allows consumers and businesses to be able to purchase durable goods. Many businesses use loans to do this. Therefore, if the financing is not there it could have a long term effect on the entire banking system. It is widely viewed as an only option at this point to prevent further, larger widespread economic issues.

Last night President Bush stated on national television that the rescue plan is crucial and is needed to avert “a long and painful” recession.

The stock market and mortgage rates are responding fairly well to this news.

I will keep you posted as the “market turns”.

Have a good day.

Melinda Movick
Mortgage Lending Officer
1 Stop Mortgage, Inc