President Obama signed the American Recovery and Reinvestment Act of 2009 into law Tuesday in Denver, Colorado – and stock markets fell near their November 2008 lows.
In case you’re still wondering… the two moves are related.
With each new stimulus; with each potential jumpstart of the economy, Wall Street questions whether the federal push will be enough to make an impact.
Traders ended undecided on that issue today, but resolute in something else — that whatever change the stimulus bill will bring, it’s not going to come fast enough to help.
The sell-off in equities did help Winter Haven homebuyers and existing homeowners, as Conforming mortgage rates were down on the day. Longer-term, though, this pattern won’t likely last. Not only will the stock market regain its balance and draw dollars back, but, more importantly, the stimulus bill contained verbiage increasing the national debt ceiling by 53.4 percent.
Government debt is often financed by printing more money, and this leads to inflation… the enemy of mortgage rates.
For now, the stimulus plan is helping mortgage markets, even though it’s doing so indirectly. If you’re shopping for Winter Haven home loan, give me a call at 863-604-3019 or apply online so we can lock you in quickly. When markets flip — and they always do — rates are likely to jump up fast.
(Image courtesy: Recovery.gov)
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- Why the Recession is the Buyer’s Friend (movephilly.blogspot.com)
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage loan originator, I’m your guy. Call me at 888-859-7418 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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