New year brings on hope for economic improvement

Consumers around the globe should feel better now that one of the worst economic years is in the books. The economy is facing many challenges heading into 2009, but knowledge that the worst of the market should be behind us should help everyone to feel better about the chances of a rebound at some point this year. The U.S. economy is likely to benefit from a broad economic stimulus package that is likely to include a tax reduction for both individuals and corporations.

The real estate industry is likely to lobby congress for additional measures to help restore confidence in purchasing homes. There are a number of ideas that are being discussed including additional tax credits, lower fixed interest rates and new lending programs. Home owners have recently benefited from the dramatic drop with mortgage interest rates and have had the opportunity to lock in low fixed rate loans through refinancing out of their existing mortgage loan.

There is growing sentiment that the banks that have received funding through the TARP program will need to increase their lending both on the consumer as well as business side of their business. This additional capital could help to boost the economy and restore job growth, a critical component in fixing the economy this year.