Our office is finally open following last week’s devastating ice storm across Kentucky. We appreciate your patience and understanding during this difficult time and hope you all are safe and warm. Mortgage rates inched lower Monday after having risen the past three sessions. In economic news, the Institute for Supply Management’s (ISM) Manufacturing Index rose unexpectedly in January, although activity remained weak. Construction Spending fell 1.4%, a bit more than forecast. Personal Incomes fell 0.2% last month, beating consensus. This will be a busy week for the release of economic data, including Pending Home Sales Tuesday, the ISM Services Index Wednesday, Productivity and Factory Orders Thursday, and Non-farm Payrolls Friday. Combined government spending for the proposed $819 billion stimulus plan, the TARP program, the Fed purchase of mortgage-backed securities, and a proposed bank cleanup is applying upward pressure on interest rates. One positive note is that foreign investors continue to show strong demand for US bonds.