Wild Day in the market...

What a wild day in the market today. The past week has been a roller coaster in the stock market and housing market. Today, 3-23-09, is no different. First we had Timothy Geithner, the US Sectary of Treasury; announced his plan on how the US government is going to move bad assets off the books of the banks. Read the article here.
http://online.wsj.com/article/SB123776536222709061.html?mod=mktw

The second biggest news of the day comes from the National Association of Realtors.

Existing home sales grew 5.1% in February against expectations for a 0.9%
decline, and following a 5.3% drop in January, according to the National
Association of Realtors.

http://www.mortgagenewsdaily.com/03232009_existing_home_sales.asp

The bottom of the Real Estate market might be in sight. With historically low interest rates and cheap home prices, the market is moving. There are two other variables that might still affect the bottom. The first one is the unemployment rate. If people keep losing jobs, then homes will still come down in price. Second, if banks start to release all of their foreclosures on the market then it will add to the supply and hurt demand, thus triggering lower prices.