In another sign the American economy is on the comeback trail, a new survey from KPMG shows optimism is improving among U.S. manufacturing and service industry executives. Executives in both key sectors say the worst is behind us.
The survey shows 68 percent of manufacturing executives believe business activity will be higher in the next 12 months. That's up from 57 percent in October.
Forty-one percent of those same executives say they plan to hire more in the weeks and months ahead. That number was just 28 percent five months ago.
As far as revenue is concerned, 65 percent of manufacturers surveyed by KPMG expect revenues to rise in the next year.
This is of course, more good news for the housing sector. As employment levels increase, so does demand for housing.
Mortgage backed securities (MBS) lost -65 basis points from Monday's open to Friday's close which helped to move mortgage rates upward. Mortgage Backed Securities (and mortgage rates) moved back into a more reasonable level after the Treasury Department announced that they would begin the process of selling their vast $1.25 trillion MBS portfolio into the open market. Also, fears over Japan started to wane in the financial sectors which helped to remove a "fear factor" premium in MBS.
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