By Jessica Shanahan, Premier Lending LLC adapted from the Shirmeyer Rate Market Report.
Mortgage interest rates increased slightly as volatility remains high in equity markets. Economic data was mixed. Economic data stronger than expected included August Consumer Confidence, July Durable Goods Orders, and the second look at Q2 GDP. GDP grew at an annualized rate of 3.7% on expectations that it grew by 3.2%. Economic data weaker than expected included the June Case/Shiller 20 City Index, the June FHFA Home Price Index, July New Home Sales, July Pending Home Sales, July Personal Spending, and the August University of Michigan Consumer Sentiment Index. Inflation continues to be tame with the Core Personal Consumption Index up only 1.2% year over year in July. Uncertainty is high as to whether the Fed will increase short term interest rates at its September 17 FOMC meeting in light of recent market volatility, the strong GDP report, and limited inflation. The Treasury auctioned $90 billion of 2 Year Notes, 5 Year Notes, and 7 Year Notes, which were met with relatively weak demand. China reduced its bank reserve requirement in an effort to stimulate lending and its economy.
The Dow Jones Industrial Average is currently at 16,598, up almost 140 points on the week. The crude oil spot price is currently at $45.17 per barrel, up almost $5 per barrel on the week. The Dollar strengthened versus the Euro and weakened versus the Yen on the week.
Next week look toward Monday’s Chicago Purchasing Managers Index, Tuesday’s ISM Manufacturing Index, Thursday’s International Trade and Jobless Claims, and Friday’s employment report for August as potential market moving events.
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