Credit Loan Deals

The commerce department reported that the sale of new homes dropped 8.5 percent in March, the lowest sales pace since October of 1991.  The median new home price dropped by 13.3 percent compaired to the year ago prices.  This data continues to show the slump the housing market is going through since the bursting of the housing bubble.  The perfect economic storm continues as the housing market, upcomming recession, and tough credit crunch are continuing to destroy the current US economy.

Fed meeting minutes show that their slashing of the key interest rates last month was due to their worries about a severe recession.  With the economic downturn, crash of the housing bubble, and credit markets being the tightest they have been in a long time, the Fed is looking at a perfect storm of issues that could make this a prolonged recession.  On the other hand with the high oil prices and food prices, it is making it difficult to lower the interest rates any further to fight the recession as a continued drop will only be more inflationary.