Finally some Good Developments in the Economy
[reddit-me]
Economy Developments
I am browsing through the internet every day to read about what’s going on with the Economy (Credit Crisis, Recession etc.). Every day I have been very disappointed about the overwhelming negative developments, but today I finally found some good news about our economy that I would like to share with you.
Mortgage applications more than double
Mortgage applications more than doubled last week as government bailouts led to sinking interest rates that made refinancing especially more attractive. On an unadjusted basis, the index increased 51.4% from the previous week; it was down 21.9% from a year earlier.
The Mortgage Bankers Association said 30-year fixed-rate mortgages fell to 5.47% this week. That’s was down from 5.99% last week. Rates on 15-year fixed-rate mortgages fell to 5.13% from 5.78%. The rate on a one-year adjustable-rate mortgage declined to 6.61% from 6.87%.
Credit markets ease slightly
The credit markets showed slightly improved confidence Wednesday, as Treasury prices retreated and lending rates fell ahead of expected interest rate cuts by Europe’s central banks.
The 3-month Libor rate eased Wednesday to 2.20% from 2.21% Tuesday, according to Bloomberg.com. The overnight Libor fell to 0.88% from 1% Tuesday. Since the start of the credit crisis, governments across the globe have worked to juice the economy by pumping the system with liquidity. The efforts have worked to bring Libor rates down significantly. The 3-month Libor peaked at 4.82% and the overnight Libor hit a record high of 6.88%.
Libor, the London Interbank Offered Rate, is a daily average of what 16 different banks charge other banks to lend money in London and is used to calculate adjustable rate mortgages. More than $350 trillion in assets are tied to Libor.
Not only good news
But no matter how much I want for the economy to be healthy again, there is still quit some negative news going around. Here are some headlines;
Nightmare on Wall Street continues
Holiday sales: Outlook gets bleaker
Auto sales plunge to 26-year low
Ik will keep browsing the net for positive changes. If you have found anything interesting (preferably positive!) about the Economy, let me know by posting a comment.
Related Posts
- Credit Bureau sold Tenant Screening Reports to Identity Thieves
- Controlling Credit: Top 10 Things to Know
- Get your Credit Reports and Scores
- Good Debt vs. Bad Debt
- Good news about dealing with Collectors during the holidays