Financial News December 2006

On December 12, 2006 the Federal Reserve held interest rates steady by keeping the Federal Funds Rate at 5.25% for a fourth straight meeting, a move widely anticipated by industry experts. This comes on the coat tails of the Fed calling the recent cooling in the housing market “substantial.”

Even so, retail sales jumped 1% in November, their largest rise since July 2006, the Commerce Department reported December 14. Excluding autos and gasoline, which gives a more reliable core measure of household spending, retail sales increased 0.9%. Analysts had forecast a 0.2% rise in retail sales in November. November’s sharp rise supports the Fed’s view that there is little evidence that a cooling housing market will have a negative effect on the wider economy.

Meanwhile, the Consumer Price Index dropped 0.1% in November, the Labor Department reported December 15. The November level of 201.5 was 2% higher than in November 2005.

The U.S. trade deficit (the gap between what this country sells overseas and what it imports) hit a 14-month low in October, due to cheaper oil prices, said the Commerce Department December 12. The October shortfall in goods and services came to $58.9 billion, down sharply from $64.3 billion in September. The deficit is at its lowest point since August 2005, and its monthly decline of 8.4% was the largest since December 2001. Over the first 10 months of 2006, the overall U.S. trade deficit stands at $643.4 billion, and is on course to surpass last year’s annual record of $717 billion.

If you are a Newark Delaware First Time Home Buyer then you should view our monthly Delaware First Time Home Buyer Seminars at www.DelawareMortgageLoans.net/seminars, you can register online at www.DelawareHomeBuyerSeminar.com

If you would like to apply for a Delaware Home Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727

John R. Thomas  Certified Mortgage Planner  NMLS – 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713