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ECRI weekly leading index dives
It fell to 119.4 in the Jan. 25 week from 121 the week before. The Economic Cycle Research Institute's activity gauge was weighed by more jobless claims and fewer mortgage originations. And bond spreads widened as investors bought the safest debt. But ECRI's six-month growth rate, a sort of moving average, rose to 2.1%, the highest since April '00.
The ECRI future inflation gauge fell 0.8% to 94.9, a 26-year low. It's fallen 20 of the last 21 months.
Housing affordability rose in Q4
The National Association of Realtors' affordability index rose to 146.8 in Q4 from 137.4 in Q3. That's the highest since '73, thanks to low mortgage rates and falling prices. The index rose 10% from Q4 2000.
Consumer sentiment rose in Jan.
The University of Michigan's index jumped to 93.0 in Jan. from Dec.'s 88.8. But that was a slight revision down from the preliminary Jan. reading of 94.2. The Michigan survey confirms the IBD/TIPP Economic Optimism Index released early in Jan., which showed a big jump in confidence.