AhSoon 阿順

Consumer confidence plunged to a five-year low last week as tight credit markets, rising prices and worsening job prospects weigh on American consumers which would affect the whole world. But I believe there are still some reason for us to feel fiscally optimistic right now:

1. Low mortgage rates

This is good news for homeowners who want to refinance into a fixed rate loan.

Today, the traditional 30-year mortgage rate is less than 6%, according to the Mortgage Bankers Association. And if you have an adjustable-rate mortgage, Fed rate cuts will make your adjustment less painful.

If you have a home equity line of credit, you will also see your interest rate decline. A majority of HELOCs are tied to the prime rate. And those rates have fallen as the fed cuts rates.

And there’s also good news out there if you are in the market for a jumbo loan. Traditionally, rates on jumbo loans - mortgages up to $417,000 - were high because Fannie Mae and Freddie Mac couldn’t purchase loans over that amount.

But thanks to the economic stimulus package that passed in congress, that limit is raised to $729,000. That means you’ll likely pay a lower rate.

But you have to act quickly. You’ll have to lock in those lower jumbo rates because the higher limits only last until Dec. 31.

2. Consumer incentives

If you’re in the market for a car, the time to buy is now until the end of the summer. That’s when incentives will reach record numbers, says Jesse Toprak with Edmunds.com.

That’s because this year could be the worst year in a decade for car sales, according to Toprak. These incentives will include cash rebates, low APR programs, lower interest rates on leases and dealer cash incentives. The vehicles with the most incentive programs: SUVs and large trucks.

Compact cars tend to have the least incentives. “In times of economic uncertainty, people make safer choices. Manufacturers don’t need as much incentive to sell them,” says Toprak.

To see a list of what incentives are available for an individual car, check out Edmunds.com.

Another good place for bargains: Furniture. Sales volume is low, so furniture retailers are rolling out the deals.

And if you want to get a good deal on a flat panel LCD or plasma TVs, those prices are going down too. In fact, according to Consumer Reports, you should find a good selection of these TVs for less than $1000.

3. Buy the recession

When the market plunges, it’s tempting to cut your losses and pull your money out of the market. But market declines can provide opportunities for investors looking for investments at bargain prices.

Consider this, if you missed 30 of the best days in the market you would have wound up losing almost half of your portfolio’s value, according to a research note by Edward Jones.

Keep in mind that the stock market falls in anticipation of a recession and recovers before it ends. Your best bet is to keep your portfolio diversified, prepare for some short-term setbacks but keep your eyes on the long-term horizon.

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