Following a marked drop in oil prices yesterday (it dropped $5 a barrel), stocks surged. In currency trading, the dollar rose versus the euro and the yen. Gas prices dropped on a national average as well. No one wants to jump the gun on spreading the good news, but could this healthy market day be a sign of happier market times to come?

While interest rates did rise this week -- amidst news of stronger inflation -- they are still at near historic lows. Freddie Mac reported that the 30-year fixed-rate mortgage (FRM) averaged 6.42 percent with an average 0.7 point for the week ending June 19, 2008, up from last week when it averaged 6.32 percent.

On the flip side of the coin, according to CNNMoney, blue-chip gains were limited -- by Citigroup's warning of second-quarter mortgage-related writedowns.

The U.S. Commerce Department also reported Tuesday that new-home starts declined 3.3 percent to a seasonally adjusted annual rate of 975,000 units in May.

A little good news, with a healthy dose of reality.

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Published: June 20, 2008

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