December 9, 2008
December 9, 2008 by admin
The stock market sold off sharply following an impressive winning streak and news that the auto loan package could be passed by the end of the week. Pending home sales for the month of November were off less than one percent, a small sign of optimism that the housing industry is reducing inventory and home prices could stabalize in the next 12 months. Fixed mortgage rates still are hovering near historic lows as home owners are refinancing into thirty year fixed rates well below six percent.
The fed today announced a bond auction where they sold over 32 billion dollars of bons at a zero percent yield. The auction results are a clear indication that investors are still gravely concerned about preserving capital as the appetite for risk is almost completely gone. The stock market has faired well in the month of December, however there are a number of key economic reports that could move the market over the next two weeks.