Investors are looking at the economy in a whole new light. After bad economic news, high gasoline prices, and a slowing housing sector dominated the nightly news cycles, the tide has turned and investors are riding the wave in confidence to a new 10 month high. The housing sector is the only negative in the economic market, plus with the elections over, the media has decided it is time to report good news on the economic front spurring the good feelings.

These forces will most likely lead to a stabilization or lowering of interest rates in the coming months which will be a boon to the housing sector. Lower rates will give confidence to buyers, allow those in adjustable rate mortgages to refinance on better terms, and create more flow in the housing market to solidify pricing.

Investor confidence in the U.S. economy surged to its highest level in 10 months, buoyed by a stock market rally and fading worries over energy prices, a survey showed on Monday. The UBS/Gallup Index of Investor Optimism jumped 14 points to 93, its highest reading since January, when it also reached 93. The index, which has risen 40 points during the past three months, was 79 in October.

The recent stabilization in gasoline prices has clearly impacted investors’ outlook on the economy as more money has been kept in investors’ pockets,” said Mike Ryan, Head of UBS Wealth Management Research Americas. Energy price concerns fell to 54 percent, the lowest level since measurement started in March 2004. In August, 78 percent of the respondents believed that energy prices were hurting the economy.

Investors’ perception of the economy also improved in November, with 46 percent of the respondents saying they were experiencing a “recovery” or an “economic expansion,” compared to 43 percent in October. About 41 percent of respondents believe the economy is in a “slowdown.” This compares to 44 percent in October. Only one in 10 investors believes the economy is in recession. via  MSN Money.

Related posts:

1. Real Estate Investors Driving Market?
2. Phoenix’s Real Estate Market Hits Tipping Point
3. The HomeSteps-SmartBuy Program Ends This Month
4. Commercial Real Estate Meltdown Keeps Federal Reserve From Raising Interest Rates