Real Estate Rate and Market indicators.

Market Outlook

Thursday, October 22, 2009 7:05 AM

Price Trend: Negative

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Current Conditions:

FNMA 4.5 100-23 (-3)

GNMA 4.5 100-28 (-3)

10yr Yield 3.423

Today's Economic Data

Jobless Claims 5:30

Leading Indicators 7:00

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Commentary:

Bonds are down this morning but off their session lows and still improved from yesterday at this time.

Jobless claims came in higher than expected but did not have the positive influence on bond prices that one

might expect. The 4 week moving average and continuing claims both dropped which helped offset the

higher than expected weekly reading. The Index of Leading Economic Indicators was also released this

morning and came in higher than expected. Also released this morning was FHFA's Home Price Index

which showed a 0.3% decline in August. Still the housing data (see chart below) does show an improving

situation. We will get more housing data tomorrow with the release of existing home sales.

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Aug. July June May April March

2009 2009 2009 2009 2009 2009

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U.S. -0.3% 0.3% 0.2% 0.6% -0.5% -1.3%

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Pacific 1.2% 0.9% 0.6% 1.5% -0.8% -1.8%

Mountain 0.8% 0.0% -0.9% -0.2% 0.6% -3.0%

West N. Central 0.2% 0.1% -0.2% 0.4% 0.7% -1.9%

West S. Central 0.0% -0.6% 1.4% 0.3% -1.0% 0.5%

East N. Central -0.6% -0.1% -0.3% 1.1% -0.7% -1.4%

East S. Central 0.4% -1.1% 2.6% 0.0% -0.4% -1.1%

New England -1.1% -0.1% 0.4% -1.8% 0.3% -2.6%

Middle Atlantic -0.6% 0.9% -0.8% 0.1% -0.7% -0.4%

South Atlantic -1.6% 1.2% -0.1% 1.1% -0.6% -1.6%

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