March 5, 2009
March 5, 2009 by admin
The stock market continued losing ground on Thursday erasing all of the gains from the rally earlier this week. The growing concerns over the banking industry continue to pressure the stock market and industy bellweathers such as Citigroup and Bank of America have seen their market caps drop by over 80% in the past twelve months. Â The market was not able to rally around earnings from Walmart that showed a better than expected quarter for the retail giant.
The housing sector is not racing to endorse the recent moves by the government to help struggling home owners refinance their mortgage or obtain a loan modification. Today, the mortgage bankers association reported that thirty day delinquincies are now almost eight percent as home owners continue to lose ground in lockstep with job losses. Most economists believe that the only realistic chance to place a bottom to the housing market will be a comprehensive adjustment to principal loan balances for every home owner. The number of properties that have loan to values of 125% or higher is growing in key states such as Arizona, Nevada and California and the recent government proposal will due little to assist these home owners who live in the hardest hit markets in the country. Mortgage rates have trended up over the past week despite the drop in the stock market. The yield on the ten year bond closed at 2.81% on Thursday and fixed mortgage rates nudged up to the low five percent range.