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	Mortgage Time Mortgage Market News for the week ending February 10, 2012
Compliments of Ron Siegel First Centennial Mortgage PHONE: (800) 306-1990 x1 ron@mbehoa.com 5753 E Santa Ana Canyon Road Suite G-321 Anaheim, CA 92807    Events This Week: Jobless Claims Fell Trade Deficit Up Sentiment Lower Manufacturing Mixed   Events Next Week: Tues 2/14 Retail Sales Wed 2/15 Industrial Prod. FOMC Minutes Thur 2/16 PPI Housing Starts Fri 2/17 CPI		Greek Negotiations Remain Uncertain With little US economic news this week, investors focused most of their attention on Europe, where Greece is attempting to avoid a debt default. A lack of progress in Greece late in the week caused a minor flight to safety, and mortgage rates ended slightly lower than last week. For most of the week, it appeared that Greek officials were on track to deliver a package of austerity measures required for Greece to receive additional aid. The negotiations took an unexpected step backward on Friday, however, as Greek political leaders agreed on an austerity package on Thursday, but European Union (EU) officials stated that Greece will not receive additional aid until the Greek Parliament passes the package. Given the resistance among the Greek people, this is not a sure thing, and it extends the uncertainty about whether Greece will be able to avoid a debt default. As a result, investors shifted to relatively safer assets, including US mortgage-backed securities (MBS), which helped mortgage rates and hurt stocks. In a light week for US economic data, the Jobless Claims report stood out. Weekly Jobless Claims unexpectedly dropped to 358K. Following several years of readings consistently above 400K, weekly claims have been mostly under 400K over the last couple of months. In the past, readings in this range have been consistent with an improving labor market. In January, the Unemployment Rate dropped to the lowest level since February 2009, and the recent Jobless Claims reports provide additional evidence that the labor market is moving in the right direction. Also Notable: The four-week average of Jobless Claims fell to the lowest level since April 2008 The US Trade Deficit increased to a six-month high The Dow stock index climbed to multi-year highs The European Central Bank (ECB) made no change in rates Average 30 yr fixed rate: Last week: +0.02% This week: -0.01% Stocks (weekly): Dow: 12,750 -100 NASDAQ: 2,900 -25    Week Ahead The most significant economic data next week will be the monthly inflation reports. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Thursday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Friday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, Retail Sales will be released on Tuesday. Retail Sales account for about 70% of economic activity. Industrial Production, another important indicator of economic growth, will come out on Wednesday, along with the detailed FOMC Minutes from the January 25 Fed meeting. Housing Starts will be released on Thursday. Import Prices, Philly Fed and Empire State will round out the schedule.   To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com To learn more about the newsletter, please call 800-627-1077 All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.