In The News...

The Producer Price Index fell -0.6% in February after a 1.4% rise in January led by lower energy costs. The drop was below the -0.2% that was expected. When stripping out food and energy, the Core PPI was inline at 0.1%. The Producer Price Index measures inflation at the wholesale level. The Consumer Price Index (CPI) will be reported tomorrow.

The FOMC meeting adjourned yesterday with the release of the statement and as expected, the Fed left the benchmark Fed Funds Rate at .25% keeping the Prime Rate at 3.25%. The Fed reiterated the language that rates will remain "exceptionally low" for an "extended period" of time.

The statement went on to say that economic activity continued to strengthen and that the labor market is stabilizing. Inflation should remain subdued for some time. The Mortgage Backed Security purchase program will end as scheduled on March 31.

The Mortgage Bankers Association released its weekly survey of applications falling 1.9%, despite historically low home loan rates. The refinance index fell 1.7%, while the purchase index decreased 2.3%.

Brought to you, courtesy of The Mortgage Market Guide