Sannhet Realty

Today Fannie Mae and Freddie Mac were bailed out by the Treasury Department. It lead to a huge rally in the stock market after falling dramatically before the weekend. The mortgage rates also went down .5% today alone. The rates may even fall more in the next couple of days.

This is a huge step in the housing market but as most believe it will not cure everything. It could just be a band-aid on the housing market.

For now, it has definitely improved the look of things and not just in the States. Asian and European markets also improved with the news. Paris's CAC-40 raised 4.4%, the DAX in Frankfurt went up 3.17%, and Japan's Nikkei up 3.6%.

Fannie and Freddie make up the majority of the mortgage market, so their impact is enormous on the housing market. This news came as great news to Wall Street. Hopefully, it will continue to be good news in the coming future of our economy and not turn out to be just a quick fix.

Falling oil prices (barring Hurricane Ike does not do damage in the Gulf) and the strengthening of the Dollar are also great signs. These three things could help to see our economy turn itself around.

To read more about Fannie and Freddie see CNBC's article.