Weekly Information 10/22

Mortgage interest rates improved slightly this past week on mixed economic data. Industrial Production, Capacity Utilization, Building Permits, and the Philadelphia Fed Business Index were weaker than expected. September Housing Starts increased 0.3% on expectations that starts would fall by 3.5%. Weekly jobless claims fell slightly. The Fed’s Beige Book, a survey of economic conditions in the 12 Fed districts, showed modest improvement compared to the previous report which showed slow economic activity. It is widely expected that the Fed will announce the details of its second round of quantitative easing at the conclusion of its FOMC meeting on November 3rd. It is expected that the Fed will purchase longer dated Treasuries to help support lower interest rates.