Mortgage application volume falls 14.2 percent as rates rise

Mortgage application volume fell 14.2 percent during the week ending April 18, according to the Mortgage Bankers Association's weekly application survey.

The MBA's application index fell to 637.6 from 743.4 the previous week.

Refinance volume fell 20.2 percent, while purchase volume declined 6.4 percent. Refinance applications accounted for 49.2 percent of total applications compared with 53.5 percent a week earlier.

The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.

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This article addresses the declining amount of mortgage applications being completed which shows the declining housing market. This article also addresses the rising interest rates of items which prevent some from purchasing or investing. Both of these factors show the declining United States's economy which many hope will not last much longer.

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US stocks head for moderately lower open

Stocks appeared headed for a moderate decline Wednesday as investors awaited another round of first-quarter earnings reports and hoped the numbers would help determine where the economy is headed.

Boeing Co. said its first-quarter earnings rose 38 percent and that its revenue advanced 4.1 percent. The company affirmed its 2008 profit forecast.

Some results arriving Wednesday painted a lackluster picture of certain sectors. Bond insurer Ambac Financial Group reported it swung to a loss of $1.66 billion from a profit of $213.3 million a year earlier. The loss came in part because of charges for bonds backed by soured mortgages. The stock is down about 9 percent in premarket, electronic trading.

Health insurer WellPoint Inc. posted a 25 percent decline in its first-quarter profit and lowered its full-year forecast because of higher medical costs.

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This article addresses the continued decline in the stock market which can be attributed and can contribute to the declines in the United States's economy. This article also addresses Wall Street's concern with how long this recession will last. This article simply delineates numerous stocks that declined which are an example of the declining US economy.

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Student Loan Turmoil Stresses Families

Paying for college is rarely easy, but this year parents and students could have a tougher time securing the necessary financing.

More than 55 lenders who originate 13% of college loans have dropped out of the federal student loan program in recent months, prompting concern that some students may not be able to finance their education. Financial firms say they are leaving because subsidy cuts enacted by Congress last year, combined with the Wall Street credit crunch that has made it costlier for them to sell the loans to investors, have slashed the market's profitability.

The departures come at a time when lenders are also tightening their standards for private student loans, a smaller but growing segment of the industry.

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This article addresses the continued decrease in availability of student loans for those students entering college. Many lenders have left the federal student loan program because of the "continuing credit crunch on Wall Street." Because of the concern and the continued worry that more lenders will drop out of the program, the federal government is willing and prepared to step in and provide assistance where and when it is necessary. This shows that the decline in the United States's economy has not only affected the housing market and other prices, but it has also affected the ability for students to further their education because the finances are not available.

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Fears of Long Recession Rising

There is little debate about whether the U.S. economy is in a recession. The question is how painful and long the downturn will be.

There is a growing fear among some economists that the recession will be particularly bad.

"We just can't believe it's going to be short. The question is how bad can it get? The situation is moving more towards severe than towards mild," said Allen Sinai, chief global economist for Decision Economics.

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This article addresses the concern of the United States's economy and being in a recession. The article states that there is little argument that the US is actually in a recession, but the concern arises when the thought of how long we will be in this recession is mentioned. The article delineates all of the various influences of the recession and the things that have contributed to the downward spiral of the United States's economy.

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Assessment Complete

Former Fed Chief: Inflation Isn't Dead

Former Federal Reserve Chairman Paul Volcker, famous for helping whip sky-high inflation in the early 1980s, said Tuesday that rising prices should again be a subject of concern for the U.S. economy.

Speaking before the Economic Club of New York, Volcker said today's economic conditions are not as severe as they were during his tenure, but still suggested caution about the threat of inflation. He also warned that the weak dollar is a major problem.

"We are at a point where we have to worry about [inflation]," said Volcker, who was appointed Fed head in 1979 by President Jimmy Carter before stepping down in 1987.

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This article addresses the former Federal Reserve Chief, Paul Volcker's statement that the United States should be aware and mindful of the continued rise in prices, and steps should be taken to combat this problem. His concerns included the threat of inflation and the weakness of the dollar. Volcker's statements simply reaffirm what many have begun to believe: the United States is facing an economic crisis, and something must be done to reverse or at least begin to change this. The leaders must lay aside any criticism they have received, and must focus on bettering the economy to get the United States back on its feet.

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As Income Gap Widens, Recession Fears Grow

Poor and middle-class families are entering the recession in a precarious situation due in part to declining or stagnant income growth, a study released Wednesday has found.

Incomes, on average, have declined by 2.5% among the bottom fifth of families since the late 1990s, while inching up by just 1.3% for those in the middle fifth of households, according to an analysis by the Center on Budget and Policy Priorities and the Economic Policy Institute, two liberal think tanks.

The wealthiest slice of Americans, however, saw their incomes rise by 9%.

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This article addresses the continued growth in the gap of incomes. This article also addresses the continued rise in prices and inflation and the continued debt of families and the depreciation of the value of homes. This shows the continued struggle of the United States's economy which is evident in more than one area of the economy.

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Weak retail sales may spur more warnings

NEW YORK (Reuters) - If there was any question of how much an early Easter would hurt sales at already-struggling U.S. retailers, J.C. Penney Co Inc (JCP.N) gave a resounding answer last month with a quarterly profit warning.The mid-tier department store operator, which counts half of American families as its customers, said earnings for its first quarter, which began on February 3, could miss initial forecasts by as much as 38 percent after sales through Easter came in well below expectations.
Investors are now bracing for more profit warnings on Thursday, when major U.S. retailers, including Wal-Mart Stores Inc (WMT.N), Gap Inc (GPS.N) and Kohl's Corp (KSS.N), report their final sales figures for March.
"We think it's possible that Nordstrom (JWN.N), Macy's (M.N) and Kohl's (KSS.N) could confess and warn of softer first-quarter earnings per share on Thursday," JPMorgan analyst Charles Grom wrote in a research note.A Macy's spokesman declined to comment. The company no longer reports monthly sales and said in February that it would stop providing quarterly earnings forecasts.
Officials at Kohl's and Nordstrom were not immediately available for comment.

Read more at http://news.yahoo.com/s/nm/20080408/bs_nm/usa_retailsales_dc;_ylt=Al7YCUlkbthhSCLUAcoqGJN34T0D

It is already apparent that stores have not been meeting a desired number of sales and J.C. Penny, among several others, claims that the predicted quarterly sales have already been off by 38 percent. Last year, J.C. Penney said March sales at department stores open at least a year, or same-store sales, rose 10.6 percent on strong demand for clothing. Specialists claim that shoppers have spent less due to "high gasoline prices, soaring food costs, dropping home values, a credit market crunch and a weakening job market". Some say that the declining sales record is being caused by the colder weather and low demand for warmer weather clothing and if so, then the sales record for March 2008 could be the worst in 23 years.