9/17/09

Good morning. The market continues to be interesting. Stocks are improving on signs of economic stabilization and growth, while interest rates are steady. The Federal Open Market Committee (FOMC) meets next week and yesterday there was a rumor that the Fed will soon preparing the markets for higher rates due to the continued signs of economic growth (or at least leveling off). Yesterday’s Industrial Production and Capacity Utilization numbers reinforced this, and the bond market saw rates slide up. This morning we have Housing Starts and Building Permits, along with the Philly Fed survey and the usual Jobless Claims. Housing Starts and Building Permits rose in August to their highest level since November, lifted by a rebound in multifamily homes. And Jobless Claims dropped by 12,000 to 545,000, the lowest reading since July (still 545,000 new claims!). Through all of this, mortgage prices are also roughly unchanged from yesterday.