November 10, 2008
November 10, 2008 by admin
The stock market fell sharply again in trading on Monday as investors are growing increasingly worried that the U.S. is headed for a long period of economic challenges. General Motors was again amongst one of the most talked about firms as their stock price sunk to levels that have not been tested since the 1930′s. The drop was linked to analysts estimates that the company would not have enough cash to make it past the first quarter of 2009 based on their current burn rate. The company has seen a dramatic errosion of shareholder value and confidence as the U.S. economy has soured.
The ten year bond hovered at 3.74%, relatively flat in trading over the past week. Fixed rate mortgage loans remain relatively unchanged and in the mid six percent range. Interest rates on fifteen year fixed terms are closer to six percent. Adjustable rate mortgage pricing has improved modestly as the LIBOR has dropped recently.