Hi folks, Kevin Sandridge here with your Weekly Mortgage Report.

The initial outlook for this week is a bit stormy for the housing market here in Winter Haven, Florida and across the nation. Consumer confidence tanked to an all-time low last week, and 100,000 American workers were handed pink-slips, each playing a role in adding significant downward pressure on the mortgage market.

For three weeks in a row, mortgage rates rose and average home loan fees increased.  Not something we like to see, obviously.

Sliver Lining En Route

Despite this negative news, there are two bright spots worth taking a look at which indicate that our country may be nearer to economic recovery than we think.First, the supply of "used" homes for sale fell from 11 months to 9 months nationwide.  This statistic often translates into what Realtors refer to as the "absorption rate," which is the time frame it would take at any given moment for the existing housing inventory to be bought up.

What we're seeing in this 2 month drop (nationally) is that home buyers are in fact beginning to re-enter the housing market to a measurable extent -  a signal that home prices are finally approaching an equilibrium.

Secondly, the US Gross Domestic Product (GDP) -- a measurement of the country's complete economic footprint -- declined by a much lesser margin than experts initially expected.   A positive surprise like this makes us wonder about what else the Doomsday Economists may be wrong.

We won't have to wonder long.

This week should see a lot of activity mortgage wise - as massive amounts of data, legislation and rhetoric will be released and should influence mortgage rates.  Some of the information impacting mortgage markets this week include:

• The Personal Consumption Expenditures Index report.  The PCE is a preferred inflation measurement and inflation is the enemy of mortgage rates. A high reading will pressure mortgage rates up.
• Retail stores are set to release data on same-store sales or "comps."  Same-store sales data allows investors to see what percentage of a retail store's growth has come from sales from existing stores versus the opening of new stores.
• The Pending Home Sales report.  This notes the number of "homes under contract" and is a good gauge for buyer interest and the general health of housing.
• 20% of the S&P 500 firms will report earnings.
• Congress is expected to vote on the Stimulus package - Here's hoping we can trim the fat... Hah!

The biggest impact on rates, however, could come on Friday - as we are presented with January's jobs report. Few data reports move the market like employment numbers,  and with the press giving so much attention to layoffs lately, expect Wall Street to have many an ant in its pants!

(Image courtesy: Wall Street Journal Online)