Yesterday August 23, 2007, four major US banks stepped up to the Fed’s Discount Window and each borrowed $500 Million. Analysts believe the Discount Window borrowing by these huge banks was largely symbolic and designed to help calm all the nervousness in the credit and financial markets.

Now, remember that the Fed just cut the Discount Window Rate last week, and many expect them, in turn, to cut the Fed Funds Rate at the upcoming September 18, 2007, Fed Meeting.

Here’s an interesting tie-in…today’s Initial Jobless Claims number showed a little softening in the labor market, and since Fed Chairman Ben Bernanke has been so concerned about a strong labor market leading to wage based inflation, this is another indicator that the Fed will more than likely make a cut to the Fed Funds Rate at that next meeting on September 18th.

For now, Mortgage Bonds remain above a floor of support at the 100-day Moving Average. I am continuing to advise floating, but should prices turn lower and move beneath the 100-day Moving Average, I will recommend locking your Delaware Mortgage Rate.

If you would like to apply for a Delaware Home Loan, you can APPLY ONLINE HERE, you can call John R. Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713