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THE ECONOMY.(TO THE POINT)

Investor's Business Daily

| June 03, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Factory orders rise 0.9% in April

New orders for planes and cars rose, but some electronics and non-durables fell, the Commerce Dept. said. Economists had forecast a 1% gain. Factory orders ex transportation fell 0.2%. Nondefense capital goods orders ex aircraft gained 1.7% to reverse March's declines. March orders were also revised up sharply to a 0.7% gain from 0.1%.

Mortgage rates dip, but rise seen

The average 30-year rate hit a 3-month low of 5.62% this week vs. 5.65% last week. But Freddie Mac said an improving job market and a growing economy are set to push rates higher in coming months. The 15-year rate fell slightly to 5.20%, as one-year ARM rose to 4.26% from 4.21%. Officials expect housing to stay healthy.

** Minneapolis Fed President Gary Stern said the rise of adjustable-rate mortgages aren't a huge risk to banks, though "relaxed" credit standards do offer some room for concern.

** M2 money supply rose by $12.1 bil in the week ended May 23. M3 gained $21.4 bil to $9.5992 bil. M1 added $21.1 bil ...

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