February 3, 2009
February 3, 2009 by admin
The stock market received some unexpected good news today from an unusual source the U.S. housing market. The market has been dropped back into the low 8,000 point range, testing lows last seen in November of 2008. The market has been staggered by disappointing corporate earnings and weak economic news reports. The report today released from the National Association of Realtors indicated pending home sales moved up nearly six percent in the month of December. The jump in home sales has coincided with a sharp drop in mortgage rates brought on by the Feds decision to begin purchasing mortgage securities in December. This historic move immediately dropped mortgage rates to historic low levels and consumers rushed to refinance their existing homes and now it appears the move also brought new home buyers into the market. Improving the housing market will be critical to pulling the U.S. out of it’s current economic recession. This positive news will be well received from the government as well as the federal reserve.