Consumers benefit from low gas prices and great refinance rates

The american consumer who is the backbone to the economy has taken a lot of blows this year as they struggle to find a bottom to the sagging economy. The recent report on the job market showed a net loss of over 500,000 jobs for the month of November, a staggering number that could continue to grow.  There are a few silver linings in today’s economic climate. The dramatic fall out of the stock market has helped to bring down mortgage interest rates to near historic lows. Consumers are benefiting with refinance rates that have not been seen since January of this year. The lower house payments could help to pump some additional income back into the economy. The rapid drop in oil prices is also going to save the average consumer in excess of $50 per month, at a time when this is desperately needed.

The market is very tied into the bailout loan proposals for the auto industry and the anticipation of the President elect Obama’s capital expenditure program. The market could continue to benefit with low rate mortgage loans as the government works in overdrive to try and jumpstart the housing market.