Uncertainty continues to hover over the market, as everyone awaits the Senate’s vote tonight on a revised rescue plan that includes some tax breaks and an increase in FDIC protection from $100,000 to $250,000. Failure to approve something this evening would likely have a damaging effect to the Stock market tomorrow.

In other news, the ADP payroll report came in better than expected, showing 8,000 jobs lost when estimates called for a drop of 53,000. The big report, however, is still to come when the Jobs Report is released this Friday. Today’s report suggests that the Jobs Report will be better than expected, but many experts are still looking for a significant drop in jobs.

Currently, prices are bouncing a bit higher off the 200-day Moving Average.

PMZ Home Loans

1600 N. Carpenter Rd. Ste. C

Modesto, CA 95351

(209) 404-2200 - Phone

(209) 254-7142 - Fax

tfrerking@pmzloans.com

These are truly crazy and historic times. The current financial crisis was unimaginable just a year ago. The government’s financial rescue plan is set to be voted on by the House and Senate today, which will provide much needed liquidity for ailing banks and financial institutions, both nationally and internationally.

In other news, Citigroup has agreed to purchase the troubled bank of Wachovia–one of the nation’s largest banks–with the help of FDIC assistance. In addition, a major inflation report came in high this morning, but it is not having the negative impact on Mortgage Rates that would have been expected, since the government’s rescue plan is dominating the headlines.

So far, interest rates look to be improving, due to the significant uncertainty in the stock and financial markets. Therefore, I recommend floating cautiously. However, I will monitor the situation carefully and keep you advised of any changes.