Some of the hot economic news we talked about last week has hit and ... its interesting. 

•-          Housing starts were down 4.5% and building permits were down 12%

•-          CPI (measure of inflation) posted the largest decline in the 51 year history of the BLS

•-          Average weekly earnings rose 1.4%

I am going to take a glass is half full stance on these numbers.  Obviously the lower inflation number is a big plus (we must see what the Fed does with rates to see where this will go), and the hike in earnings is positive.  The negative housing stats while "negative", are helping to ease inventory or what inventory would be which is one of our core issues right now.  Low mortgage rates and a decreasing inventory will certainly not hurt our cause.

Mortgage rates are doing their best to break away from the 200-day moving average.  The problem is, they haven't made up their mind what direction to go.  Mortgage Bonds (mortgage rates) have traded sideways and remained relatively unchanged for 11 straight days now.  That is something we haven't seen in 2 years.  So, I am not complaining about this nice break from the volatility we have become accustomed to, but I am eagerly awaiting a break for the better.

We will be sure to keep you posted!  Please let me know if you have any questions!

Jay Otlewski, RE/MAX Integrity, 623.362.3060, Jay@valleyREadvisor.com