February 11, 2009
February 11, 2009 by admin
The stock market looks to rebound following a sharp decline on Monday. The governments plan to help stabalize the banking industry was not well received and the market sold off sharply. Investors are now looking to the proposed stimulus package and new economic news to try and better understand where the market is heading. A major report on U.S. international trade showed that the gap is now at a six year low, clearly signaling a global recession.
New home owners are going to continue to sit on the sidelines until their is more clarity with the proposed tax breaks available under the governments stimulus proposals. Both versions in Congress feature a tax credit aimed at trying to help jump start home buying. Fixed mortgage rates benefitted from yesterday’s large stock sell off, but have been trending up over the last two weeks. The yield on the ten year bond dropped down to 2.8% on Tuesday, after moving above 3% last week. Fixed rate loans are in the mid five percent range on thirty year loan terms with most national mortgage lenders.