Fact is the Dow should not be considered a dependable economic projection vehicle or national economic indicator. Recently there have been a number of economic reports pointing to a recovering economy. Even the currently battered industrial sector is showing steady signs of improvement. For example new jobless claims in the United States dropped to the lowest level in 17 months last week according to the U.S. Labor Department. New claims for unemployment benefits fell 26,000 in the week ended July 13th. The lowest number since February 17, 2001. The Conference Board reported that the Index of Leading Economic Indicators for June was unchanged at 112.4 after rising 0.4 percent in May. The Commerce Department indicated that U.S. business inventories in May were up 0.2 percent after having fallen 0.2 percent in April. This was the first time in 16 months (since January 2001) that business inventories had risen. Unless individual consumer retirement investments were allocated to Money Markets and Bond Markets over the past several weeks, most are feeling the impact of the recent market plunge and this will certainly pull the pointers down on consumer confidence. While members of Congress crack down on corporate crime, a market melt down is playing havoc with retirement funds. This downward spiral of consumer confidence always makes a direct hit on business and consumer spending. Not to be ignored is the sheer acceleration of the decline over the past two weeks. The Dow shed 14.5 percent in just 10 sessions and $1.5 trillion, or nearly 20 percent, evaporated in just the past two weeks, according to the Wilshire Total Market Index. Still the question is, could the markets steep plunge lead to a double-dip recession considered so unlikely weeks ago? How will the current market affect rates? And what is the feds solution to the current dilemma? Read more at http://www.mortgageloansearch.cc The University of Michigan’s Consumer Sentiment Measurements confirms a decline in future retail sales and in spending on discretionary items such as automobiles and restaurant meals. What Fed action can turn things around? Fed rate cuts. The 6 month removed fed rate cut method sent the market soaring several times in 2001. In a surprising demonstration of the Feds ability to steer the economy about the Federal Reserve cut a key interest rate by one-half percentage which immediately impacted stocks sending figures into positive territory. On more than one occasion the decision to cut rates by the Fed's chief policy-making group, the Federal Open Market Committee, came during an emergency conference call. FED RATE CUT LIKELY? Federal Reserve Chairman Alan Greenspan said that the Fed will have to take action by cutting short-term interest rates from their already-low level. A rate cut, possibly two or more would ease the impact of a weakening economy and provide a floating device for companies adrift after a long drenching from falling stock prices. A rate cut can provide a boost of confidence as consumers take advantage of more attractive fixed financing rates and seek ways to save money over the long term by refinancing home loans, car and student loans as well as consolidating credit card debt. The money saved will inevitably lead to increased spending as the Fall holiday shopping season gets underway.
To help consumers stay up to date with mortgage loan rates fluctuations, the Mortgage Loan Search Network, a consumer oriented financial resource at http://www.mortgageloansearch.cc, has added a new feature to its current Rate Alert program, the Fed Rate Cut Rate Watch Special Alert.
Mortgage Loan Search's Fed Rate Cut Special Alert feature will keep consumers abreast of the Stock Market and Treasury Market's impact on credit card and mortgage rates in the days and weeks ahead. In addition to providing tools and tips to help consumers save money on their next financial venture the new Fed Rate Cut Special Alert feature will provide a heads up from current news and views regarding possible upcoming rate cuts or hikes.
"We want the user to be fully informed of the impact of current events on their money before entering the lending marketplace," said Mark Askew, editor of the Mortgage Loan Search Rate Watch Alert program. He adds, "This new feature should do just that."
For immediate release.
Mark Askew
Editor
Mark@mortgageloansearch.cc
MortgageLoanSearch.cc
2920 N Loudon Ave
410 466 8327
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