In The News...

Manufacturing in the Philadelphia region continued to deteriorate in November as reported by the Philadelphia Federal Reserve Bank. The Philly Fed diffusion index fell to negative 39.3 in November from negative 37.5 in October. The index crashed last month from 3.8 in September. Readings below zero indicate contraction. The decline was worse than estimates of -35.0 that economists were expecting.

The latest weekly Initial Jobless Claims show an ever-weakening labor market with new claims rising by 27,000 to 542,000, the highest level in 16 years. The results were worse than expected as economists had forecast 503,000 claims. The four-week moving average for new claims increased by 15,750 to 506,500 claims, the highest level in 25 years.

The financing arm of GM, GMAC, has applied for status to become a bank as it seeks to tap funds from the government's $700 TARP. GMAC follows other financial, nonbank companies such as credit card company American Express Co and commercial lender CIT Group in applying for bank status and Treasury funds.

Brought to you, courtesy of The Mortgage Market Guide