Housing Snapshot - September 13, 2004 - 9/13/2004 - Mortgage Loan Refinance Debt Equity

Housing Snapshot - September 13, 2004

Mortgage interest rates moved up slightly last week amidst some glimmers of hope that the economy is now moving out of its summer doldrums, but rates on 30-year loans remained comfortably below 6%. In better than expected news for the economy, the Labor Department reported that the Producer Price Index was down 0.1% in August, leaving it at 3.8% for the first eight months of this year, compared to 4.6% for the same period of 2003. Also a good sign, the U.S. trade deficit dropped 8.9% in July to $50.15 billion, down from a record $55.02 billion in June. Although the July number was the second highest in history, the financial markets viewed it as a good step in the right direction. U.S. exports in July rose 3% to $95.86 billion. On the lumber front, signs of some weakening in prices started to emerge last week. The cost of framing lumber was $458 per 1,000 board feet, $9 below the previous week. The price of 15/32-inch 3-ply sheathing rose $5 to $445 per 1,000 square feet, and oriented strand board remained unchanged at $412.