[1]

• [2] Exisiting Home Sales dropped 2% in March. The bad news was that housing supplies increased to 9.9 months, up .3 from the February number of 9.6. Median prices were up 2.5% to $200,700, but is down 7.7% as compared to the median price in March 2007. [3] State Street Investor Confidence Index dropped to 72.8 from 77.2. [4] Bank of Canada Announcement The bank cut it’s key interest rate 50 basis points, as expected, to 3%. Our Fed Funds rate is at 2.25%.(Tuesday)

• [5] Jobless Claims, came in at 342,000, dropping an unexpected 33,000. No one seemed too thrilled as one week’s data is hardly a trend, but let’s see what next week’s numbers bring. [6] Durable Goods Orders continued to decline in March, mainly in the transportation sector, ie motor vehicles. [7] New Homes Sales fell 8.5%, worst showing since 1991. But even worse was the year over year decline of 36.6%, worst since 1981. The downward trend continues reflecting the rough environment for builders. [8] Help Wanted Index 19 versus last reading of 21. This number indicates less help wanted advertisements which of course translate into fewer available jobs. (Thursday)
• [9] Consumer Sentiment at 62.6 this reading is at it’s lowest point since the 1980’s. Not surprising given the increased cost of gasoline, groceries etc.(Friday)

[10]

• Bonds…2 year 2.41%, 5 yr. 3.18% and the 10 yr. 3.87%, quite a bit higher than last week, again.
• Crude oil finished at $118.52 per barrel.

Of note this week:

The unexpected dip in Consumer Confidence and the continued increase in oil prices continue to plague consumers and the markets.

The housing numbers and the continuing trend towards higher rates, in just a couple of weeks we’ve seen the 10 year go up by 37 basis points. Not so good for those hoping to get mortgages close to the lows, in fact the 30 year fixed average went above 6% this week.

Couple the higher rates with the tightening of lending standards and I think we may continue to see weakness in the housing sector. Again I will issue my disclaimer that each area is quite different and will experience variations from the averages, hence the use of the term “averages”.
Next week will focus on the FOMC Announcement, New Home Sales and Durable Goods Orders.

The Economic Week Ahead:

• (Monday)

• [11] Consumer Confidence , [12] FOMC Meeting Begins(Tuesday)

• [13] FOMC Announcement,[14] NAPM Chicago Index , [15] MBA Purchase Applications, [16] GDP, [17] Employment Cost Index(Wednesday)

• [18] ISM Manufacturing Index , [19] Personal Income and Outlays , [20] Jobless Claims (Thursday)

• Employment Situation(non-farm payrolls)(Friday)

Have a great weekend!