Monthly Archives: January 2007

With all signs pointing towards economic growth, markets were not all surprised when today’s Producer Price Index registered higher than expected. Mortgage markets are flat in response to the data. The impact of PPI is muted for three other major … Continue reading →

As a big chill settles in over the country, oil prices continue their decline and are now down 15% since mid-July. High oil prices are typically associated with inflation, but given the precarious balance of the U.S. economy, low oil … Continue reading →

In a week practically devoid of economic news, mortgage rates trended higher last week amid falling oil prices and surprise strength in Holiday Season spending. Investors are jittery about the U.S. economy. Since it stopped raising the Fed Funds Rate … Continue reading →

For all of the talk about the slowdown in consumer spending, it appears that this Holiday Season was a winner. This morning’s Retail Sales report doubled economists’ expectations by showing 1.0% growth. This is just one more inflationary pressure in … Continue reading →

In a "surprise" move, The Bank of England raised its benchmark by 0.25% to 5.250%. Only one of 50 economists surveyed had predicted the increase and its unexpected nature played a key role in moving mortgage rates higher today on … Continue reading →

After last week's data showed ongoing strength in the U.S. economy, there is a growing sentiment that the Fed will choose to raise the Fed Funds Rate before it begins lowering it. FFR currently stands at 5.250% and here is … Continue reading →

This summer, oil crossed the $77 threshold per barrel and since then, it has been on a steady decline. Today, it crossed $58 per barrel. Lower prices for oil should reduce heating bills and gas pump receipts for Americans this … Continue reading →

Interest rates remain inverted, a market condition in which the longer you commit to lending your money, the less that you earn on your investment. Why is that a big deal? Imagine if a friend asked you to borrow money … Continue reading →

This morning’s Non-Farm Payrolls report (i.e. the number of new jobs created for industries other than farming) registered a 167,000 gain in November This is tremendously higher than the 115,000 jobs economists had predicted. Markets were caught leaning in the … Continue reading →

This summer, economists were predicting that 175,000 new jobs were created in June and then payroll processor ADP shared their own estimate of 368,000 with the markets. In a panic, mortgage rates moved higher because – well, what if ADP … Continue reading →