November 23, 2008
November 23, 2008 by admin
The stock market finished the week down almost 5%, despite a 500 point rally on Friday. Investors are moving into bonds at record rates and the ten year bond closed in on the 3% level for the first time in over ten years last week. Consumer confidence continues to be a major challenge for both the economy and stock market.
Some of the worlds largest banks, Citigroup and UBS may need to raise additional capital in the coming months as their are new concerns that the lenders corporate mortgage portfolio could have similar challenges that faced the residential market in the next 12 months. The market will study closely housing related news this week in a shortened trading week with the Thanksgiving holiday in the U.S.
Fixed rate mortgage loans are now under six percent for the fist time in the past three months. Consumers who are thinking about refinancing, can benefit from the rapid decline in the stock market. Rates and the market continue to be very volatile, so locking into a great mortgage rate could offer some long term savings.