This is likely to go down as one of the worst years for the U.S. economy in the past 100 years. Home prices have continued falling, foreclosures have risen almost every month. The credit markets remain a mess and mortgage companies are going out of business on a daily basis. The stock market was off almost 13% during the first six months of the years as investors are growing increasingly concerned that the economy is going to be in a major recession. The economic stimulus package has been successful in helping to stimulate spending and allowing home owners with jumbo loans to refinance into lower fixed rate mortgages. The housing market could get an additional boost if there is a separate housing stimulus package passed this year. The second half of 2008 and the balance of the year will feature two stories. Oil prices and the housing market. There is a slim chance that the housing market could finally reach its bottom in the second half of the year, especially if a government bailout is approved. Oil prices have played havoc on the market and economy and will likely be the major focus through the end of the summer. It is hard to imagine oil prices continuing to climb at the present rate without more government intervention. The second half of the year should be one that balances out all of the losses suffered in the first two quarters of 2008..

7-1-2008©LowRateMortgage.com

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