December 18, 2008
December 18, 2008 by admin
The stock market turned lower again in mid day trading on Thursday as concerns over the economy and the fallout from the Bernie Madoff investment scam are garnering most investors attention. The stock market received welcome news this morning from the Philly Fed reported which showed a slight improvement over the November report for the manufacturing industry. Oil continues to trade lower, despite news out of OPEC that they would follow through on a 2 million barrel per day cut to production.
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.
December 13, 2008
December 13, 2008 by admin
The stock market rallied late on Friday as investors looked past the Senate’s decision to fillibuster the auto loan bailout package. The market was off by over 300 pts in pre market activity as the news hit that the auto industry may not receive the bridge loan that they desperately need. The market got an immediate boost when the white house acknowledged that they would look to use funds from the TARP program to provide working capital until the new administration gains its foothold in Janruary.
The market also reacted favorably to a PPI report that indicated their is a low level of producer price pressure in the market. This will make it easier for the FOMC to meet and potentially further reduce the Fed Funds rate next week. With a prime rate below 5%, consumers will save who have credit card debt and home owners with home equity loans. Mortgage rates continue to hover near historic lows for 2008 and offer great opportunities for home owners looking to refinance or purchase in the near future.
November 12, 2008
November 12, 2008 by admin
The stock market suffered another strong blow on Wednesday as Best Buy, one of the nations largest retail stores updated guidance that retail sales have slowed considerably. The stock market immediately fell almost 300 pts as investors are looking to move out of equity positions into safer investment vehicles.
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.
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.