February 17, 2009
February 17, 2009 by admin
The stock market dropped sharply to start a shortened week on Tuesday. Investors are growing more concerned that equity investments will continue to fall as the economy further deteriorates. The largest area of concern continues to be the banking sector as the $350 billion dollar tarp program that was approved last year appears to have had no impact on restoring lending and bringing back confidence in the public sector. Many economists now believe the banking industry will require in excess of two trillion dollars in order to be fully stabalized. President Obama is expected to sign today the latest economic stimulus program in an effort to try and put a floor into the falling economy.
Mortgage rates and investors in gold are two of the areas that are benefitting from the fall out in the market. The yield on the ten year bond dropped almost twenty five basis points over the past two days, and now sits at 2.67%. Fixed rate mortgage loans on fifteen year loan terms are now in the low five percent range and lower with points.