The housing industry continues to receive support from falling mortgage rates. The ten year bond opened at 2.09% on Thursday, hovering near historic lows. Fixed rate mortgage loans are now well into the low five and high four percent range with most national mortgage lenders. Mortgage rates near the historic lows could last for the next 30-60 days, but there are no long term guarantees due to the rapid fluctuations with the stock market.

President elect Obama has promised a broad and aggressive plan to help the ailing economy including proposals to spend money on infrastructure. The plan could reach 1 trillion dollars in total as he works agressively to pull the country out of it’s deepest recession since the great depression. Global stocks have also rallied on the news of the U.S. spending plan.

Home foreclosures continue to skyrocket as the economy turns sour. The rate of new foreclosures hit a record pace last month and there is little doubt this figure will continue to grow larger as the economy goes sideways. Fixed rate mortgage loans are still trading in the low five percent range as home owners look to benefit from moves by the fed last week to bring liquidity to the secondary marketplace. The market still is not truly benefitting from the rapid change to the ten year bond price, which is now well below 2.7%. Long term fixed rate mortgage loans could continue to benefit from the uncertainty in the economy, but there are no guarantees that the rates will last for an extended period of time.

The Fed recently moved to purchase over 700 billion of mortgage backed loan securities, which led to a sharp decline with mortgage rates to 2008 low levels. This move has spurred a wave of new home refinancing, but the impact on spurring home sales is yet to be determined. The lower rates will help make house payments more affordable for consumers who are looking for a reason to purchase a new home.

The new proposals include a move by the government to create a new marketplace for mortgage backed loan securities that would have the possibilty to lower rates down to 4.5%. This move would certainly help to bring house payments lower, which certainly would help provide some incentives for the housing market. This would help to restore some incentives for home buying, but will need to be combined with further stimulus that could come in the form of rebates for purchasing homes. The issue of home foreclosures will need to be addressed further with lenders as the incentive for lower rates does not address home owners who are currently upside down on their home mortgages and do not qualify to refinance.

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.

The U.S. housing market could use a boost and is likely to get a boost from the sharp decline with mortgage rates over the past week. The ten year bond opened at 2.95% on Friday, near historic lows. Fixed rate mortgage loans are in the mid five percent range, but could move higher quickly with market related news. Locking into near historic low mortgage rates would be a great move for any homeowner who is in an adjustable rate loan product and is concerned that their interest rates could be moving up in the upcoming years.

The stock market has dropped sharply for the past three days as investors are growing more concerned as to the depths of the economic recession. The market was also digesting additional news on the TARP program and renewed optimism that there would be some type of bailout program started for the auto industry in the coming weeks. Mortgage rates are moving lower with the news from the stock market, but continue to move at a much slower pace down as mortgage security investors have propped up their roi requirements for some time.

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.

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.

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.