 |
|
 |
 |
| Volume 15, Number 43 |
Economic Highlights for the Week Ending November 13, 2009 |
|
| MONDAY, November 9th |
 The Federal Reserve's senior loan officer survey, which provides information on credit availability and demand at the nation's largest banks, showed still tight credit standards at most institutions; however tightening was not becoming worse. Tight credit standards continued to apply to businesses and consumers alike. Because of this, demand for loans continues to fall off but at a slower rate in the current quarter. Demand for prime, residential mortgages increased as demand for non-traditional mortgages declined. |
|
| TUESDAY, November 10th |
| The National Association of Realtors reported that the median price for an existing home was up 6.4% in the third quarter from the previous quarter but that prices remained 11.2% lower on a year ago basis. This was the first quarterly gain since early 2007 indicating some stabilization in pricing is occurring. Sales volumes have also improved. Sales price gains could be short-lived though depending on the number of distressed homes that hit the market in coming months. |
|
| WEDNESDAY, November 11th |
|
VETERANS DAY
Equity and Futures Markets Open
|
|
| THURSDAY, November 12th |
| The MBA mortgage applications index increased 3.2% to 627.5% for the week ending November 6. The purchase index tumbled 11.7% last week and remains 22.3% lower than its year ago level. The refinancing index gained 11.3% on the week and is up 140.2% over last year. Low mortgage interest rates continue to provide refinancing opportunities for homeowners wanting to move into more stable, lower cost and long term home financing terms. |
 Jobless claims fell 14k to 502k for the week ending November 7. Claims have moved into a new lower range however, at just over 500k, initial claims are still elevated indicating a very weak pace of hiring. Improvement is happening in labor market conditions but very slowly. |
 Long term mortgage rates fell to their lowest level in 5 weeks this week amid strong demand for Treasuries that raised prices and lowered yields in the bond market. The 30-year fixed rate mortgage averaged 4.91% this week down from 4.98% last week according to Freddie Mac's mortgage market survey. |
 The government ran a $176.4 billion deficit in October compared to a $155.5 billion budget shortfall in October one year ago. Last month's shortfall was the biggest on record for any October. Rapidly rising outlays due to various stimulus programs and significantly lowered revenues as a result of a weakened economy have the Treasury budget on track for another monster deficit for FY2010. |
|
| FRIDAY, November 13th |
| The international trade deficit widened to $36.5 billion in September from a trade gap of $30.8 billion in August. Both imports and exports rose during the month but imports rose almost twice as fast and account for the larger share of trade activity. Higher oil prices and volumes in September pumped up overall import figures. Trade volumes were up across the board as well, suggesting both domestic and global economies are starting to recover. |
| Import prices increased 0.7% in October less than an expected gain of 1.0%. Higher petroleum prices have pushed overall import prices up in recent months. Over the past year, import prices have fallen 5.7% but in the last six months they are up 13.3%. Petroleum prices were down 12.2% on the year but have surged 87.0% over the past six months. |
| Consumer sentiment fell to 66.0 in early November from a reading of 70.6 in October. Sentiment levels remain mired in recessionary territory as consumers wait for relief from job losses, unemployment, higher energy prices and tight credit conditions. Struggling consumers are likely to continue their spending pullback which will impact the economically important holiday shopping season this year. |
|
| Stock Market Close for the Week |
| Index |
Latest |
A Week Ago |
Change |
| DJIA |
10270.47 |
10023.42 |
+247.05 or +2.46% |
| NASDAQ |
2167.88 |
2112.44 |
+55.44 or +2.62% |
|
| WEEK IN ADVANCE |
| Hopes are that a full economic calendar in the coming week will continue to support the view that the recovery remains on track going into the fourth quarter. Inflation reports, retail sales, housing starts and regional manufacturing surveys highlight. |
| Key Interest Rates |
Latest |
6 Mos Ago |
1 Yr Ago |
| Prime Rate |
3.25 |
3.25 |
4.00 |
| Fed Discount |
0.50 |
0.50 |
1.25 |
| Fed Funds |
0.10 |
0.17 |
0.28 |
| 11th District COF |
1.272 |
1.627 |
2.679 |
| 10-Year Note |
3.42 |
3.14 |
3.78 |
| 30-Year Treasury Bond |
4.36 |
4.12 |
4.24 |
| 30-Yr Fixed (FHLMC) |
4.91 |
4.86 |
6.14 |
| 15-Yr Fixed (FHLMC) |
4.36 |
4.52 |
5.81 |
| 1-Yr Adj (FHLMC) |
4.46 |
4.71 |
5.33 |
| 6-Mo Libor (FNMA) |
0.56438 |
1.56500 |
3.12125 |
|
Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco
|
|
|
Upward pressure on interest rates
Downward pressure on interest rates
No pressure to change interest rates
News worthy
|
|
|
|
 |
|
 |
|
This Economic Report was sent to: tishtischer@hotmail.com
Click Here to Unsubscribe from this Economic Report
 |
This material is provided by license agreement. Any reproduction, distribution, posting, or linking
without prior written permission from Focus Publications is expressly prohibited. |
|
|
|
Comments(0)