Morning Market Report
by Tom on February 19, 2009
in Market Report, banks
Here’s the latest on what’s going on in the markets:
- Producer prices came in higher than expected, mainly due to increased energy costs. This is putting pressure on the mortgage market and pushing upward on rates.
- Jobless claims remain elevated.
- To say that the market’s reaction to the stimulus plan and also to the newest foreclosure prevention plan is “lukewarm” is putting it mildly.
All of these have combined to push rates up .125% today. We’re at 5.375% for a 30 year fixed no points, best credit refi and .25% lower than that for a purchase. Call me for the details that might factor in to your individual scenario.
My recommendation remains to lock all loans as the trend and the influencing factors are pushing up rather than down on mortgage rates.
Tom Vanderwell
U.S. producer prices rise 0.8% in January – MarketWatch
WASHINGTON (MarketWatch) — U.S. producer prices in January rose for the first time since July, the Labor Department reported Thursday, as energy prices staged a comeback and propelled the overall producer price index higher.
Producer prices for finished goods climbed by 0.8% in the month, twice the number expected by Wall Street economists. The core PPI, which strips out food and energy prices, rose by 0.4%.
Energy prices staged a huge turnaround in January, rising by 3.7% after falling 9.1% in December and 12.4% in November.
Economists surveyed by MarketWatch were expecting producer prices to climb by 0.4% in January. They predicted the core PPI would rise by 0.1%.
