By Jessica Shanahan, Premier Lending LLC adapted from the Shirmeyer Rate Market Report.
Mortgage interest rates improved slightly this past week as economic data was generally weaker than expected. Economic data weaker than expected included the May Case/Shiller 20 City Home Price Index, July Consumer Confidence, June NAR Pending Home Sales, the first look at Q2 GDP, the Q2 Employment Cost Index, and the University of Michigan Consumer Sentiment Index. The Employment Cost Index was the weakest report on record and this index has been tracked since 1982. Economic data stronger than expected included June Durable Goods Orders, weekly jobless claims, and the July Chicago Purchasing Managers Index. The Fed indicated at the conclusion of its FOMC Meeting that it’s looking for additional improvement in the labor market and an increase in inflation closer to its 2% target before it will increase short term interest rates. The Q2 PCE inflation indicator was only up 1.3% year over year, much lower than the Fed’s 2.0% target. The Treasury auctioned $90 billion in 2 Year Notes, 5 Year Notes, and 7 Year Notes, which were met with mixed demand.
The Dow Jones Industrial Average is currently at 17,764, up almost 200 points on the week. The crude oil spot price is currently at $47.83 per barrel, down slightly on the week. The Dollar weakened versus the Euro and strengthened versus the Yen on the week.
Next week look toward Monday’s Personal Income and Outlays and ISM Manufacturing Index, Wednesday’s International Trade report, Thursday’s Jobless Claims, and Friday’s employment report for July as potential market moving events.
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