"The buzz surrounding the expected Fed action is raising consumer awareness and causing people to evaluate their financial portfolio," said Robert D. Walters, chief economist at Intuit's (INTU) Quicken Loans, a leading online mortgage lender and the 27th largest direct mortgage lender in the U.S.

"There's been a lot of discussion recently about the weakening economy and how some consumers have experienced losses in their own portfolios because of it.   NASDAQ has given back most of the market gains from the last five years, but the housing sector is still doing well," said Walters.  "In fact, a number of our recent customers are telling us they are pulling money out of the market and putting it into residential real estate."

"With some of the plunging stock prices this past year, consumers are realizing their home is one of the few financial assets they have that is performing well.  They are starting to view their homes as financial tools which can be leveraged and managed, similar to stocks and mutual funds."

Despite uncertain economic conditions, home values have advanced steadily.  Housing prices across the U.S. have risen an average of 31.8 percent over the last five years.  In some regions of the country, such as New England and the West Coast, values have risen 44 and 40 percent, respectively.   (The attached chart shows the percent change in housing prices for each of the U.S. Census Divisions.)

Division	Division Ranking*	1-YR	Qtr.	5-Yr.	Since 1980
United States**		8.8	1.7	31.8	156.3
New England	1	12.4	1.8	44.0	284.6
Pacific	2	12.3	2.5	40.3	200.0
Middle Atlantic	3	9.2	1.7	26.0	207.7
Mountain	4	8.8	1.8	31.9	142.7
South Atlantic	5	8.5	2.1	28.6	144.5
West North Central	6	7.9	1.2	34.9	124.7
West South Central	7	7.1	1.4	26.5	71.6
East South Central	8	6.5	2.0	25.9	124.9
East North Central	9	6.1	0.8	31.0	151.0

* Note: Rankings based on annual percentage change.

** Note: United States figures based on weighted division average.

To help consumers leverage residential real estate or use their home as a financial asset, Walters offers the following tips:

• Purchase. With rates at 30-year lows, now is a great time to purchase a home. If you consider the after-tax advantages of home ownership, a mortgage interest rate in the sevens will provide an after-tax equivalent interest rate in the 5% range. And with inflation now hovering around 3%, the true cost of borrowing is about 2%.
• Refinance into lower rates. Homeowners with high interest rates may now be able to move into conventional mortgage rates. For example, a consumer with an 11% rate on a $120,000 loan typically averages $1,143 a month in mortgage payments. If the same borrower were to move into a 9% conventional rate, the consumer's payment could drop to $965 a month, saving them $177 a month. The calculators at the Quicken Loans Refinance Center at www.quickenloans.com can help consumers determine their monthly savings.
• Reduce Private Mortgage Insurance (PMI). Consumers also can reduce their monthly payments by taking advantage of the appreciated value of their home to eliminate PMI. PMI is very expensive and provides zero value for the consumer because it carries no after-tax advantage.
• Low Cost Home Equity Loans. Some home equity loans can now be approved in as few as three days, with rates in the 9 % range. Take cash out for home improvement or to help defray educational expenses, etc. If they qualify, some consumers can get an interest rate on their home equity loan as low as 8-10%.

  Interest on home-equity borrowing of $100,000 or less is often tax deductible. In fact, the after-tax advantages of a home equity loan can be significant, says Walters. For example, a consumer who gets a $50,000 home equity loan with a 10-year fixed mortgage rate of 9 percent pays $633.38 a month, which equals $7600.55 in out of pocket expenses a year. "Assuming a 33 percent tax bracket, that consumer would pay $4368.85 in interest, which would in turn give back the consumer $1441.72 at tax time," said Walters. "So, after taxes, the consumer is really only paying $6158.83 a year, or $499 a month. In essence, the payment on that $50,000 10-year fixed loan after the tax deduction carries a rate of about 6.03 percent for the first year." Consumers should consult their tax advisor to see if they qualify for a tax deduction.

Quicken Loans can help consumers understand the impact of today's market conditions and their buying power. There are a variety of calculators and tools at the Quicken Loans Website at www.QuickenLoans.com, which can help consumers calculate their savings and determine if refinancing or taking out a home equity loan is right for them.  Or consumers can talk to a Quicken Loans loan consultant by calling 1-800-729-4424.

MEMO to Editors: Quicken Loans officials and recent customers are available for interviews Contact Elizabeth Jones at 734/805-7137 or via e-mail at Elizabeth_Jones@QuickenLoans.com or Claudia DeMordaunt at 734/805-57977 or Claudia_DeMordaunt@QuickenLoans.com.

About Quicken Loans
Quicken Loans (previously known as Rock Financial Corp., owner and operator of RockLoans.com), a leading provider of direct-to-consumer home loans on the Internet, offers mortgages in all 50 states and the District of Columbia. The company provides a wide variety of home financing options including conventional, sub-prime, home equity, government and jumbo loans.

Quicken Loans combines cutting-edge technology and high touch personal service to give consumers a convenient one-stop home and mortgage experience on the Internet. More than 400 experienced loan professionals located in the Quicken Loans' state-of-the-art Web Center work directly with consumers throughout the entire process, while the Web site educates and empowers consumers through timely interactive tools and information related to the home financing process. Intuit Inc. acquired Rock Financial (and RockLoans.com) in December 1999.