Daily Market Update 8/19/08

Mortgage rates had little reaction to this morning's release of the July Producer Price Index showing a 1.2% rise from June, doubling expectations. The more closely watched core rate rose 0.7% from June, also exceeding consensus. Much like last week's release of the Consumer Price Index, traders shrugged off the report, since oil prices have fallen more than 20% in recent weeks. July Housing Starts came in at 965K, the lowest level since 1993. Stocks moved lower.