Worries About Interest Rates Decline on Wall Street
[Jul 7, 2007.]
Wall Street is apparently not as worried about rising interest rates as it was earlier this year—judging from a recent rise in the Dow.
The Dow Jones Industrial Average soared 100 points Monday. The catalyst appeared to be a report indicating disappointing home sales. That report lent credence to the theory that the Federal Reserve will not be raising interest rates in the near-term.
Just two hours into the session, the Dow jumped 0.8 percent, with the S&P 500 increasing 0.6 percent and the technology-heavy Nasdaq jumping 0.5 percent.
The National Association of Realtors has been reporting that home sales dropped to 5.99 million units in May. That was down from the projected 6.0 million forecasted by a number of leading economists.
Median home prices stood at a disappointing $223,700.
There had been fears that the Fed would hike interest rates in order to quell inflation. But a sluggish housing report indicates fears of rate hikes may, in fact, be unfounded.
The chief investment officer at Harris Private Bank, Jack Ablin, was quoted in a published report as saying, "Some tepid economic data or some economic weakness is offsetting some of those worries."
The Central Bank is expected to hold its overnight lending rate for banks at 5.25 percent. Interestingly enough, the Federal Reserve Board has kept interest rates steady since August of last year.
Still, there may be other factors to account for the rally on Wall Street. For instance, a decline in oil prices occurred following a decision by Nigerian unions to end a strike that would have interfered with oil exports. Obviously, the price of oil has been a major economic concern of late. Some observers worried that sharp increases in oil prices might bring on an inflationary surge. However, for the moment, at least, that inflationary fear may be kept at bay.
Julie Ann Amos
July 7th 2007
Recent News
- Homeowners Opting for Fixed-Rate Mortgages
The end of the nation's housing boom has also meant a decline in the number of people opting for so-called "balloon mortgages." [July 6th 2007] - Demand for Second Homes Increases
Rising mortgage rates, waning interest in subprime mortgages, and bigger-than-needed inventories have combined to give rise to disappointing news on the housing front. However, there is one sector of the housing market that appears to be doing well—the secondary home market. [July 5th 2007] - Home Sales Take a Hit
Confidence among American home builders appears to be eroding. That's because house sales are apparently suffering from the one-two punch of stricter lending practices and increasing mortgage rates. [July 5th 2007] - Consumers Feeling Pinch of Higher Interest Rates
American consumers appear to be taking a hit as a result of the rise in interest rates. The yields on the 10-year Treasure note, which affect a number of long-term interest rates, have risen sharply recently. The fallout is expected to have an immediate effect on homeowners and prospective homebuyers alike. [July 4th 2007] - Inflation Fears May Be Overblown
A recent report by the Associated Press indicates that worries about inflation may be premature. [July 3rd 2007]
Recent News:
- More good news on auto loans
The National Automobile Dealers Association has been meeting over the weekend, and delegates were more upbeat than they have been for years.
[February 6th, 2012] - Auto loans dodge credit-tightening bullet
It's getting tougher to get approved for many types of finance. But auto loans are an exception. Perhaps that's why 2012 is looking so rosy for car makers -- and car buyers.
[January 31st, 2012] - How to get the best deals on auto loans
Too many people pay too much for their auto loans. Don't be one of them.
[January 22nd, 2012] - Auto loans could get even easier to find
One expert is predicting that cheap auto loans are going to be easier to get in 2012. Is she right?
[January 17th, 2012] - Detroit auto show heralds strong year for car makers, auto loans
As the Detroit auto show opens today, the spirit of optimism is likely to be in stark contrast with the dark moods of the last three years. And much of that is down to the widening availability of auto loans. Now, even those with troubled mortgage histories stand a better chance of being approved.
[January 9th, 2012]
Easily subscribe to the rebuild.org news feed.
Read our news without even visiting our site!
Rebuild.org monthly news archive
- February 2012 (1)
- January 2012 (5)
- December 2011 (6)
- November 2011 (8)
- October 2011 (9)
- September 2011 (8)
- August 2011 (18)
- July 2011 (19)
- June 2011 (17)
- May 2011 (16)
- April 2011 (12)
- March 2011 (11)
- February 2011 (18)
- January 2011 (20)
- December 2010 (21)
- November 2010 (18)
- October 2010 (21)
- September 2010 (17)
- August 2010 (19)
- July 2010 (20)
- June 2010 (17)
- May 2010 (20)
- April 2010 (27)
- March 2010 (31)
- February 2010 (23)
- January 2010 (27)
- December 2009 (27)
- November 2009 (24)
- October 2009 (28)
- September 2009 (24)
- August 2009 (32)
- July 2009 (41)
- June 2009 (43)
- May 2009 (42)
- April 2009 (48)
- March 2009 (48)
- February 2009 (29)
- January 2009 (45)
- December 2008 (45)
- November 2008 (24)
- October 2008 (7)
- August 2008 (17)
- July 2008 (17)
- June 2008 (47)
- May 2008 (43)
- April 2008 (50)
- March 2008 (10)
- February 2008 (14)
- January 2008 (8)
- December 2007 (10)
- November 2007 (20)
- October 2007 (21)
- September 2007 (18)
- August 2007 (28)
- July 2007 (31)
- June 2007 (17)
- May 2007 (12)
- April 2007 (8)

