Citigroup news lifts stock market despite drop in home sales

 Citigroup, the worlds largest bank by asset totals has received additional Federal assistance to shore up the companies balance sheet as investors have been selling the stock down to record low levels over the past two weeks. The company lost over 120 billion in stock holders equity over the past year and has been devastated by the fallout from the U.S. housing markets, credit crunch and lack of transparency within the companies balance sheet.

The stock market jumped over 300 pts in intraday trading on Monday, following a 500 pt rally on Friday of last week. Investors may cautiously be returning to the market, but there is little reason for near term optimism to continue as evidenced by today’s economic report showing that existing home sales continue to decline in the U.S.

Mortgage rates have moved up over the past two days as the stock market has recovered from a dramatic sell off that saw stocks drop to their lowest levels in the past six years. Fixed rate mortgage loans are still hovering in the high five percent range, and provide a great window for homeowners looking to refinance to lock in lower rates.