Weekly Information 03/18/2011

Mortgage interest rates improved slightly this past week on a flight to quality associated with the uncertainty surrounding the effects of the earthquake, tsunami, and nuclear radiation issues in Japan. Also of note, Libya announced that they will halt all military operations. Investor confidence in Germany fell for the first time in five months in March. Economic data of note included February Housing Starts and Building Permits, both of which were much weaker than expected. The March Philadelphia Fed Business Index, though, was much stronger than expected. Inflation data included the February Producer Price Index (PPI) which was up 1.6% on expectations that it would be up 0.6%. Excluding food and energy, core PPI was up 0.2%, in line with expectations. The Consumer Price Index for February was up 0.5% on expectations that it would be up 0.4%. Excluding food and energy, core CPI was up 0.2% on expectations that it would be up 0.1%.