In The News...

Inflation is being held in check at the wholesale level with the Producer Price Index (PPI) falling by a record -2.8% vs. a consensus of -1.5% in October, the largest monthly decline in 61 years. Plunging gasoline prices were a major factor, falling by a record 24.9%. However, after excluding volatile energy and food prices, the Core PPI increased by 0.4% vs. expectations of a 0.2% rise.

Home Depot reported today that weak consumer spending will push sales down by as much 8% for 2008, more than the 5% that was originally expected. With the housing market still contracting and home improvement projects being put off, Home Depot's future revenues will be challenged. Rival Lowe's reported Monday quarterly profit fell 24% as same-store sales sank 5.9%.

Oil and gas prices continue to fall as worldwide demand for Lt. Sweet Crude continues to tumble. The average price for a regular gallon of gasoline across the country fell to $2.07 and have fallen 60 days in a row. A month ago, gasoline sold for $2.95 a gallon. A year ago it sold for $3.10 a gallon. Crude oil has gone from a record high of $147 back in July to the current price of $55.50.

Brought to you, courtesy of The Mortgage Market Guide