Part One: Market Research
You have observed that the NYSE has been extremely volatile over the last month. Select any 30 day period in the last year and plot the behavior of the NYSE over that period on a graph, using Microsoft Excel. Address the following questions and cite your sources using APA format:
- What were the highs and lows for your selected 30-day Period? What is the projected long term trend based on this period? Justify your answers.
- What factors/events influenced market behavior over this 30-day period?
- How have these factors/events influenced market behavior for interest rates? Explain and justify your answers.
- How have these same factors/events affected the money markets? The bond markets? The mortgage markets? Explain and justify your answers.
- Has the Fed reacted with policies that are in response to these factors/events over the 30-day period? Explain the purpose of these policies, and justify your responses.
Part Two: The Mortgage Markets
You have been offered a house that is available for sale at a price of $320,000, and financing with a minimum down payment of 20% and an annual fixed interest rate of 5.5%, for 20 years. Your personal credit rating is not excellent, but considered good.
Answer the following questions, and provide a rationale for your responses:
- How do the mortgage interest rates being offered in your area compare to rates being offered in other areas across the country?
- What factors cause the differences in mortgage rates across the country?
- What factors cause the differences offered to individuals in the same market?
- What are the trends for interest rates in your area?