Good Morning Everyone and Happy Friday! Last week the Dow posted a positive close for the week, even though it was only 52 points, it broke the 6 week skid of losing weeks that traders have had to endure since the beginning of May. At this moment, the Dow is down 63 for this week having dropped about 30 points while I was writing this article. We'll need a heck of a turn around this afternoon rally to put is in positive territory for a 2nd week in a row.
This week's economic news was all about those 2 pesky 800 lb gorillas that continue to put a damper on any notion of economic recovery. Thursday's Initial Jobless Claims remained well above the 400K number reminding us that the employment situation in our country is still a viable fear.
NAR reported this week that existing home sales were down in May as temporary factors and financing problems weighed on the market. Existing-home sales fell 3.8% to a seasonally adjusted annual rate of 4.81M in May from a downwardly revised 5.00M in April. This is a noticeably precipitous drop of 15.3% from the 5.68M pace in May 2010 when sales were surging to beat the deadline for the home buyer tax credit.
The good news for all of us is the fact that with a flailing stock market, interest rates are fabulous and the buying power borrowers have today is unlike any other. Low home prices and low interest rates at the same time is a phenomenon not seen in this modern era of economics.
I hope you all have a terrific Friday and a very restful and relaxing weekend.
This week's economic news was all about those 2 pesky 800 lb gorillas that continue to put a damper on any notion of economic recovery. Thursday's Initial Jobless Claims remained well above the 400K number reminding us that the employment situation in our country is still a viable fear.
NAR reported this week that existing home sales were down in May as temporary factors and financing problems weighed on the market. Existing-home sales fell 3.8% to a seasonally adjusted annual rate of 4.81M in May from a downwardly revised 5.00M in April. This is a noticeably precipitous drop of 15.3% from the 5.68M pace in May 2010 when sales were surging to beat the deadline for the home buyer tax credit.
The good news for all of us is the fact that with a flailing stock market, interest rates are fabulous and the buying power borrowers have today is unlike any other. Low home prices and low interest rates at the same time is a phenomenon not seen in this modern era of economics.
I hope you all have a terrific Friday and a very restful and relaxing weekend.
