By Jessica Shanahan, Premier Lending LLC adapted from the Shirmeyer Rate Market Report.
Mortgage interest rates increased slightly this past week as economic data was mostly stronger than expected. Economic data stronger than expected included June Wholesale Inventories, July Retail Sales, June Business Inventories, the July Producer Price Index (PPI), and July Industrial Production. Business Inventories increased the most since January of 2013. PPI increased more than expected but was actually down 0.8% year over year. Core PPI, excluding the food and energy components, was up 0.6% year over year. Economic data weaker than expected included weekly jobless claims, July Capacity Utilization, and the University of Michigan Consumer Sentiment Index. The Treasury auctioned $64 billion of 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met with mixed demand. China devalued its currency to help stimulate exports to strengthen its economy. Greece continues to negotiate with creditors regarding additional bailout funds which it will need to be able to make a payment due to the European Central Bank on August 20th.
The Dow Jones Industrial Average is currently at 17,446, up about 70 points on the week. The crude oil spot price is currently at $42.44 per barrel, down over $1 per barrel on the week. The Dollar weakened versus the Euro and strengthened versus the Yen on the week.
Next week look toward Monday’s Housing Market Index, Tuesday’s Housing Starts, Wednesday’s Consumer Price Index (CPI) and FOMC Minutes, and Thursday’s Jobless Claims, Philadelphia Fed Survey, and Existing Home Sales as potential market moving events.
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