Market Update Friday, 1/4/08

HAPPY NEW YEAR! 

This week was loaded with economic data.  On Monday the economic news was Nov existing home sales were up 0.4% against expectations of +0.6%. There is a 10.3 month of inventory based on the present buying pace; Oct sales were revised slightly better, to -1.0% from -1.2%.  The December employment report came in lower than expected at 18k new jobs as the unemployment rate rose .3% to 5%.  This data does not necessarily come as a shock but does paint a picture of what we can look for in the next FED meeting at the end of January; meaning a .5% cut in the Fed Funds rate.  Interest rates are doing better in the face of this weeks information as the 30yr fixed is sitting at 5.75%.

Brad Dinkel