Daily Market Update 5/23/08

Mortgage rates inched lower as the National Association of Realtors reported a 1% decline in Existing Home Sales for April from March. The annual pace of 4.89 million units represents a 17.5% drop from April 2007. The median price for the month fell 8% from a year ago. Stocks were lower as oil resumed its surge to nearly $133 a barrel. The main news for the week was Tuesday’s release of minutes from the Fed’s April FOMC Meeting indicating growing inflationary concerns among Fed members. Further rate cuts now appear unlikely, and most analysts expect the Fed to begin raising rates by year end. One positive development for the week was the return of investor confidence in financial markets, where the worst appears to be over.

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