As goes the economy so does the market? It has seemed like a popular trend the month of May which has seen the DOW down 7.9%! The markets volatility has become an everyday occurrence. Ending the week pretty much flat but, giving you an ulcer if you happen to follow the markets. This was the worst May the Stock Market has seen since 1962! The $64,000 question on the street is whether or not we go into a double dip recession and or if European Credit Crisis spreads into other countries. To top it off with recent issues with North Korea, we can see what is troubling the markets.

The good side of all this is that oil has back off recent highs falling to around $73.50 a barrel. Rates have remained low, which is great for the housing market. The 30 year fixed rate national average is at 4.80% and the 15 year fixed rate average is 4.25%. The troubling news is that the purchase application index fell again this week 3.3% and after last weeks fall of 27.1% Existing Home Sales jumped to 5 month highs in April up 7.6%. Inventories were up 8.4% month supply and sales were up 21.1% in the Northeast year over year. 1st time home buyers accounted for 1/2 of the people buying. These are all lagging indicators and old data. It is pretty clear that the end of the Home Buyer Tax Credit Program had a tremendous effect on the housing market. I feel as though that is a bad thing because the problem going forward is, what is going to stimulate people now? The question now will be what happens in May and June?

Consumer Confidence Index was at 63.3% in May vs. April’s reading of 57.7% The next month will give us a great gauge on what the future has in store for us. The keys going forward will be the Unemployment Rate and the pulse of the consumer. Consumer Spending was unchanged for the month of April and the first time jobless claims fell 460,000 down 14,000. Consumer Sentiment for May was 73.6 which was better than expected. This measures the consumers mood.

My issue is that the way out of a financial problem is for the Government to cut taxes on business which gives the private sector an incentive to expand and create more jobs. It is clear that the unemployment rate which is currently at 9.8% will not be decreasing anytime soon. The Government can not expect prosperity by creating temporary employment like they have with the census workers. The way to economic prosperity is to encourage productivity and innovations. That leads to better products and services which then creates jobs.

Greg Afarian’s Market Report Week of 3-8

Retail Sales in February rose 0.3%

Consumer Sentiment Dips in March to 72.5% from 73.6 in February

10 YR Since the Tech Bubble. CNBC’s Lack of Compassion always makes me sick!

Crude Oil hits $81.24 and Gold is at $1,107 an Ounce.

$3.00 a Gallon Gas?

Greece credit crisis continues and has more riots in the streets.

30 YR Fixed Rate Average 5.01%
15 YR Fixed Rate Average 4.32%

Stocks to watch GOOG, RIMM, VLO

Carlos Slim $53.5 BILLION as World’s Richest Man.

About the Me: The above Real Estate information was provided by Greg Afarian, l can be reached via email or send me a message on Twiter

Have a home to sell on the NorthShore in Mass? I’ll help you with my social media skills for a quick transaction to help save you time and money.

I service the following towns in Boston and the Greater Boston Area. Andover, North Andover, Lawrence, Methuen, Haverhill, Boxford, Bradford, Dracut, Reading, North Reading, and beyond.