Some very good news was posted last week, three important factors, not just one, which indicate a rising confidence in the market as a whole.
- This past week, The Federal Reserve announced The Federal Open Market Committee decided to keep its target for the federal funds rate at 5.25% and stated that the economy seems likely to expand at a moderate pace over coming quarters (Source: The Federal Reserve, May 9th, 2007)."
- The Mortgage Bankers Association (MBA) released its weekly Mortgage Applications Survey for the week ending May 4, 2007. On an unadjusted basis, the Index increased 4 percent compared with the previous week and was up 19.9 percent compared with the same week one year earlier (Source: The Mortgage Bankers Association, May 9th, 2007).
- The Dow Jones Industrial Average soared more than 100 points, and posted its fifth straight weekly gain. Wall Street resumed its advance on Friday as investors interpreted a government report of milder inflation as a signal that the US Federal Reserve might consider cutting interest rates later this year (Source: The Sydney Morning Herald, May 11th, 2007).
