Retail sales increased by 1.2% in October driven primarily by a 5.7% increase in automobile sales, following a 0.7% rise in September. While retail sales have steadily increased since 2009, home furnishings have remained flat. The 10 Year Treasury Note yield rose 13 basis points to 2.85%, 37 basis points above its recent low of 2.48% in early November, suggesting mortgage rates may also increase due to the correlation between treasury and mortgage rates.

1. Daily Economic Update
 Retail sales increased in October by
1.2% on a seasonally adjusted basis.
This follows a 0.7% increase in
September.
 Growth in retail sales was primarily
attributable to automobiles, which
increased by 5.7% in October.
Although retail sales have been steadily
increasing since early 2009, home
purchases, such as furniture and other
furnishings, have been flat over that
same time frame.
 The 10 Year Treasury Note traded at
2.85% early this morning. This was 13
basis points higher than Friday’s close
of 2.76% and 37 bps higher than its
most recent nadir of 2.48% set in early
November.
 The 10 Year Treasury Note and the 30
Year mortgage rate are highly
correlated. An increase in the treasury
rate suggests higher mortgage rates.
Produced by NAR Research
November 15, 2010