- Fixed-rate mortgages continued to fall this week, dropping to the lowest point since February.
Adjustable-rate mortgages climbed.
- Stocks closed sharply lower at 8565 as investors worried about the fate of the $14 billion bridge loan for the auto giants.
- Get ready for the final rate cut this Tuesday – will it matter?
Fed rate cuts typically help the economy because they lead banks to drop their prime rates, which influence the rates set for credit cards, home equity lines of credit and other personal loans as well as business loans.
But so far, there has been no evidence that the rate cuts have done anything to stimulate the economy. We now know for certain that the economy is in recession and it began in December 2007. Some believe the recession could last well into 2009…or even longer. Only time will tell.
- Americans’ debt shrinks – 1st time ever.
It’s a sign of the times: Americans are pulling back on the debt they use to spend and fuel the economy, while their net worth is declining. This is a very good thing!
