Mortgage News

In line with analysts' expectations, consumer prices pushed 0.3% higher in March after being unchanged in February, the Commerce Department reported April 16. Core consumer inflation, which excludes food and energy costs, rose 0.2% in March. Over the past 12 months, consumer inflation is up 4%, reflecting relentless gains in energy costs, which are up 17% over that period, and food prices, which are up 4.4%.

At the wholesale level, producer prices rose 1.1% in March, almost triple the 0.4% rise economists had expected. Core wholesale inflation, which strips out energy and food costs, rose just 0.2%, down from a 0.5% increase in February. For the past 12 months, producer prices are up by 6.9% and core producer inflation is up 2.7%, the biggest year-over-year increase in two years.

Housing starts fell by 11.9% in March to an annual rate of 947,000 units, the Commerce Department said April 16, a much bigger decline than economists were predicting. Meanwhile, building permits fell 5.8% to an annual rate of 927,000, the slowest pace since a 916,000 rate in April 1991.

Industrial production fared better, however, as output increased 0.3% in March, following a sharp 0.7% decline in February. Wall Street had predicted a 0.1% decline. Strength came mostly from the mining and utility sectors.

First-time claims for jobless benefits rose by 17,000, to 372,000 for the week ended April 12, the Labor Department reported. The four-week moving average of new claims held steady at 376,000.

According to RealtyTrac Inc, foreclosure filings were 5% higher in March than February and 57% higher than a year ago. March marked the 27th consecutive month of year-over-year increases in national foreclosure filings. Approximately one in every 538 households received a foreclosure filing in March.

Economic news due out this week includes reports on existing home sales on April 23 and new home sales on April 24.

Current Oil Prices -$114.86 / barrel, up $4.75, almost $10 in 2 weeks

US Dollar - Down against the Euro (1.5923) and up against the Yen (102.08)

Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.

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