Rumors are circulating that Ashlee Simpson is pregnant and engaged. She was signing of her new CD in New York and was spotted with a great diamond ring on her hand.

Ashlee and her boyfriend Pete Wentz who have been dating since last year are reportedly expecting their first child in July 2008. The Sun reported that “Pete recently posted a blog online announcing the couples’ plans to make something that cannot be illegally downloaded, hinting at a baby.”