This holiday shortened week proved to be exciting for all involved with securities and investments. The economy continued to faulter as many predicted a grim holiday sales season for retailers and housing starts were at there lowest point in 14 years. The Fed minutes this week also forcasted lower inflation, slower job growth, and slower economic growth. Stocks finished up for the week and mortgage-backed securities mounted a mild return as well.
Economists are begining to mention a bottom to the housing slump with 12 months of inventory to clear. Also, some of the larger banks in the US are looking to create a superfund to purchase assets from structured investment vehicles, many of which contain mortgages, in hopes of reviving the credit markets.
This week consumer confidence will report on Tuesday and personal consumption expenditures and core personal consumption expenditures will report on Friday. Both of these reports are of high importance to the mortgage markets and the economy as a whole.
Thank you for the opportunity to serve you and your clients.