The U.S. stock market and exchange traded funds (ETFs) bounced back this morning ahead of an announcement today by the Federal Reserve.

Most believe that the Fed will leave its bank lending rate at zero to entice lending and further stabilize the financial system.

The U.S. trade deficit rose 4% to $27 billion in June, which reflected an increase in imports of 2.3%. It was the first increase in nearly a year, indicating that the demand in the United States is starting to recover.  Exports increased by 2%, indicating that global demand is increasing.

In the real estate arena, U.S. mortgage applications dropped last week, reflecting a drop in demand for home refinancing loans as interest rates soared to their highest levels since June.  Borrowing costs on a 30-year fixed mortgage jumped to 5.38%, up 0.21% from the previous week, as the seasonally adjusted index of refinancing applications decreased 7.2%.