December 1, 2008
December 1, 2008 by admin
The stock market started the month of December on a down note. The market appears to be selling off aggressively following last weeks holiday rally. The market is digesting global news of economic challenges in Asia and Australia as well as local news that factory orders reached a twenty year low. This follows up a nervous weekend following the Black Friday, a closely watched day to monitor retail traffic.
Mortgage rates started the day near 2008 lows. The ten year bond continues to move lower as investors are looking to the security of bonds. Mortgage rates are now well positioned under six percent following the rapid decline started by last weeks Fed announcement of their direct purchase of mortgage bonds. There are a number of key economic reports due out this week that could move the market, including Friday’s jobs report which could have a large impact on stock prices and mortgage rates.
November 7, 2008
November 7, 2008 by admin
The stock market is looking to rally off of a two day sell off as the market continues to digest news that the economic recession could be gaining momentum. The October jobs report came in and indicated that unemployment continues to climb as the unemployment rate is now at 6.5% nationally. The market lost over 240,000 jobs last month, higher than the projected 200,000 jobs most economists had predicted, but better that the 300,000 total that some economists had feared.
Mortgage rates have turned lower this week following a sell off of almost 10% from the stock market. Fixed mortgage rates are heading back into the low six percent range. The real restate market is desperate for some positive news and mortgage rates moving lower will help with bringing more buyers into the market as we head towards the seasonally slower months.
November 5, 2008
November 5, 2008 by admin
The market is taking some profits following the election. Democrats have gained a large number of House and Senate seats as well as having Senator Obama run away with the Presential Election. The country is looking to turn the page economically on a dramatic down turn with housing and a growing unemployment problem.
The market has sold off as investors are pulling out and taking some profits off the table in lieu of the pre election run up. Mortgage rates continue to hover in the six percent range as the ten year bond is around 3.72%. Homeowners are holding out with the hopes that the market will gain some stability through a government sponsored bailout program. There is growing speculation that a portion of the TARP money will be earmarked for helping home owners. Some of the countries largest banks including JP Morgan and Bank of America have stepped up there efforts to pro actively slow down the rate of bank foreclosures on their books.
Fear and panic result in huge declines in the world equity markets
October 25, 2008 by admin
The amount of fear in the market appears to grow on a daily basis as investors try to find a bottom to the stock market. Accross the world equity markets continue to falter as the growing concerns about growth grab the headlines. The amount of money removed from the stock market is almost hard to quantiy as it surpasses trillions of dollars in wealth.
What many economist believe started in the U.S. with the fallout in the housing market is now being felt in countries from Australia to Iran as the world tries to stop the economic slowdown from gaining speed. Oil prices have dropped sharply, despite a recent change by OPEC to slow down production. The decrease in oil prices are likely to be one of the factors that help to restore the economy faster. In addition, the U.S. housing market may finally be closing in on a true bottom as home sales are begining to trend higher.
Mortgage rates finished the week lower for the second week in a row. Combining this with another expected cut in the fed funds rate, the amount of liquidity added to the markets will certainly help assist with a recovery. There is growing speculation that the government will look for an additional stimulus package to help jumpstart the economy. The sooner the U.S. economy turns around, the world markets are likely to follow suit.