LAST WEEK'S NEWS HIGHLIGHTS

Minutes from the Federal Reserve's closed-door meeting of March 27 and 28 revealed that "most members thought that the end of the tightening process was likely to be near." Wall Street's response to a possible end to increases in the federal funds rate sent stocks higher, with the Dow Jones Industrial Average closing at 11,342.89 on April 20, its highest level since January 2000.

Fueled by higher prices for gasoline, clothing and shelter, U.S. consumer prices rose by 0.4% in March, far higher than the modest 0.1% gain in February, the Labor Department said April 19. Core inflation, which excludes food and energy costs, increased 0.3%, the biggest jump since March 2005. Meanwhile, wholesale prices rose 0.5% in March, following a 1.4% dip in February. Analysts had expected a 0.4% rise.

The Conference Board's Index of Leading Economic Indicators -- a closely watched reading because it predicts future economic activity -- dropped 0.1% in March after sinking 0.5% in February. The March and February declines follow four consecutive positive readings.
Housing starts in March also declined 7.8%, with permits for new construction down 5.5%, the Commerce Department said April 18.

Rates on 30-year mortgages rose to their highest point in nearly four years for the week ended April 20, according to Freddie Mac. Mortgage application activity for the week ended April 14 decreased 1.7%, the Mortgage Bankers Association reported on April 19.

(Courtesy of Louise Rose, ELB Mortagage Brokers)