November 10, 2008
November 10, 2008 by admin
The stock market fell sharply again in trading on Monday as investors are growing increasingly worried that the U.S. is headed for a long period of economic challenges. General Motors was again amongst one of the most talked about firms as their stock price sunk to levels that have not been tested since the 1930′s. The drop was linked to analysts estimates that the company would not have enough cash to make it past the first quarter of 2009 based on their current burn rate. The company has seen a dramatic errosion of shareholder value and confidence as the U.S. economy has soured.
The ten year bond hovered at 3.74%, relatively flat in trading over the past week. Fixed rate mortgage loans remain relatively unchanged and in the mid six percent range. Interest rates on fifteen year fixed terms are closer to six percent. Adjustable rate mortgage pricing has improved modestly as the LIBOR has dropped recently.
November 7, 2008
November 7, 2008 by admin
The stock market is looking to rally off of a two day sell off as the market continues to digest news that the economic recession could be gaining momentum. The October jobs report came in and indicated that unemployment continues to climb as the unemployment rate is now at 6.5% nationally. The market lost over 240,000 jobs last month, higher than the projected 200,000 jobs most economists had predicted, but better that the 300,000 total that some economists had feared.
Mortgage rates have turned lower this week following a sell off of almost 10% from the stock market. Fixed mortgage rates are heading back into the low six percent range. The real restate market is desperate for some positive news and mortgage rates moving lower will help with bringing more buyers into the market as we head towards the seasonally slower months.
November 5, 2008
November 5, 2008 by admin
The market is taking some profits following the election. Democrats have gained a large number of House and Senate seats as well as having Senator Obama run away with the Presential Election. The country is looking to turn the page economically on a dramatic down turn with housing and a growing unemployment problem.
The market has sold off as investors are pulling out and taking some profits off the table in lieu of the pre election run up. Mortgage rates continue to hover in the six percent range as the ten year bond is around 3.72%. Homeowners are holding out with the hopes that the market will gain some stability through a government sponsored bailout program. There is growing speculation that a portion of the TARP money will be earmarked for helping home owners. Some of the countries largest banks including JP Morgan and Bank of America have stepped up there efforts to pro actively slow down the rate of bank foreclosures on their books.