There were several pieces of news last week that painted a fairly gloomy outlook for the economy. As we enter the "earnings season" the first big companies to report both had lower than expected results. Both Alcoa and General Electric reported low earnings and gave projected earnings estimates lower than previously thought. It set a negative tone for the stock market and money moved out and over the safer bonds.

Other news last week, "Meeting Minutes" from the March 18^{th Fed Meeting revealed that there is dissention amongst the Fed Presidents over the concerns of inflation. The problem the Fed battles is that the economy is stalling/stalled and they need to take action to stimulate it. In doing so, one action is to continue to lower the Fed rate. This typically leads to inflation and a whole host of other economic issues. It is a constant issue for the Fed regardless of the market climate however, the recessionary concerns and the slow economy are in the fore front.}

At the end of the day, the poor economic news was good news for Bonds and mortgage interest rates. We are approaching levels that we experienced in 2005!

There are several economic reports due this week that will potentially move the market. Today we start with the Retail Sales Report. Wednesday we get the Consumer Price Index and the Housing and Permit reports. On Thursday the Leading Economic Indicators report will be published and it provides data on economic activity over the last 3-6 months.

Coupled with the daily reports from corporate earrings, this may prove to be an active week. Remember, bad economic news is good for mortgage rates….good news is not.

Please let me know if I may be of assistance. It’s a great refinance market!

Conforming: (Less than $417,000)

30yr Fixed 5.625%

3yr ARM 5.000%

5yr ARM 5.125%

7yr ARM 5.250%

10yr ARM 5.500%

Jumbo: (Greater than $417,000)

30yr Fixed 7.250%

3yr ARM 5.250%

5yr ARM 5.250%

7yr ARM 5.375%

10yr ARM 5.750%