Lake Tahoe Real Estate- Economic Market Update

by Bonnie
Friday, July 16, 2010 1:31pm (PST)

Tuesday showed that the sliding of the stock markets has slowed to a halt and the indices began to rise again. Finishing at a 10, 216.7 was the Dow Jones Industrial Average. At the same time, the 10 year Treasury note yield rose very slightly to 3.06%. Including jumbo rates, the HSH Association mortgage rate remained stagnant at a very low 4.95%.

The good news:
Investors had overreacted to recent worries, causing the markets to be oversold. Also, there is a good possibility that key American corporations will yield substantial earnings in the near future. Reports from Alcoa and CSX gave early word that have shown favorable. Moveover, Intel's report is soon to be released and should prove to a market-mover, taking stocks higher, if positive.

Nothing is certain in today's world, but it is very likely that the current trend of a slow-go economy could persist.

Some factors to consider;
Expiring homebuyer tax credit and economic stimulus programs may have only short term effects.
Steady requirements for countries to repay their debts, possibly provoking a borrowing of even larger debts.
An estimated $5 trillion will have to repaid over the next 2 years.

World credit markets may rely heavily on these factors and this may result in volatile and/or higher interest rates. This could further slow the recovery process. These developments should be watched closely and higher rates and slower markets should be anticipated.

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Tags: market update economic update