As you all know by now, Government regulators took over the mortgage giants Fannie Mae and Freddie Mac.  Pundits waited with bated breath to see what the various world markets would do on Monday.

Well the news is in - world markets are responding most favorably to the news.  The bond market is also drastically improving as well.

What does this mean for sellers and buyers?  I would say good news across the board.  This is currently resulting in improved rates (116 basis points as I write this).  Buyers have the chance at rates getting down to the 5% mark again on 30 year fixed mortgages.  Sellers will see an influx of interested buyers which means homes may not sit as long.

Is this a turn around?  No longer a buyer's market? Now a seller's market?

  "Not so fast, Pilgrim!"                                                   

Regulators will be tightening lending guidelines even more.  The added fees that Fannie and Freddie put into place will not be going away anytime soon.  Even though this spells good news for buyers and sellers there is still a huge inventory of homes on the market.  Foreclosures, bank owned and fire sales - oh my!

With more buyers and a possibility of home prices leveling off will result in more home sellers jumping into the market.  The light at the end of the tunnel may have gotten a bit closer but there is still plenty of tunnel to travel.

For now, allow the buyers, sellers, Realtors and Mortgage Folk to rejoice.  There is still much work to be done.