At 8:08 a.m. this morning I got a call from a client on the cusp of making an offer: “Don, what’s going to happen because of Freddie Mac and Fannie Mae being taken over?”

As I write this at 3:47 p.m. on Monday afternoon, the answer is that interest rates (on conforming loans) have dropped by over one half point – that’s HUGE! So FAST! However, a lender warned me there may be a slight pull back, but nevertheless, everyone seems to be relieved and happy that the Fed’s action yesterday took place.

This won’t solve our housing crisis, but it should help bring liquidity and some sense of “normalcy” back into the marketplace.