Market Update Monday November 17th 2008

This morning, Mortgage backed securities (MBS) are essentially unchanged from the close on Friday. This week is full of economic data that historically moves the mortgage backed security (MBS) market. As a general rule, weaker the expected economic data is positive for MBS, which leads to lower mortgage rates. Also, lower inflation numbers are a positive for MBS and lower interest rates.

Economic Data for this week

Monday

• NY Empire State Index, economists expecting a -26.0, came in at -25.4.

• Industrial Production, this came in much better then expected at 1.3% versus expectations of a -.01% decline.

Tuesday

• Producer price index which measures inflation on the producer level. Economists expecting a -1.5% overall drop and when excluding food and energy they are expecting a .1% increase.

Wednesday

• Consumer price index which measures inflation on the consumer level. Economists expecting a -0.8% overall drop in prices and when excluding food and energy they are expecting a .2% increase.

• Housing Starts, economists expecting 780,000 after last months reading of 817,000.

• Federal Open Market Committee (FOMC) minutes are released which gives investors insights to what the fed is talking about during their meetings.

Thursday

• Jobless claims, economists expecting 510,000 after last months reading of 516,000

• Philadelphia Fed Index, which measures strength of manufacturing in the Philadelphia area, economists expecting a -30.0 after last months -37.5 reading.

• Leading Indicators, economists expecting a -0.6% after last months 0.3% increase.

Cheers,

Ian R Bennett

Mortgage Banker