We interrupt this financial news story...

To bring you a response!!

Dear Mr. Bernanke,

Thanks for the history lesson on housing today. We have been taught we can learn a lot about our future from our past, but somehow our future has a lot of factors that our past could not even imagine. You know like that technology stuff, global events, and our ever rising population in the United States. The markets are waiting for you to cut the Fed Rate and conventional wisdom thinks it will save the housing market. You said you are watching the housing market and will intervene if it continues to decline. But unless I am missing something, the Fed Rate has nothing to do with our clients that want to purchase or refinance with a 30 year fixed rate; since the fixed rate loans are decided by the 10 year treasury bonds. It will take several Fed cuts to make the adjustable rate mortgages competitive again (17 cuts to be exact to get back to 2005 levels). Even without the rate cut, the economy in other sectors is humming along at a steady pace. And President Bush says he is implementing "strategerie" to "save" homeowners who have sub prime loans that cannot make their mortgage payment. That would be awesome if he has come up with a way to lasso all of the different banks and servicing entities that are now involved. But unless current borrowers can call 1-800-"I didn't read my closing documents" or 1-800 "the builder made me take this loan" it smells more of playing the press than a fast acting plan.

Regards,

The Housing Market

thank you to Mary Ellen a colleague