Mortgage Minute

Posted by Jessica Shanahan- Premier Lending on Friday, August 26th, 2016 at 3:41pm.

By Jessica Shanahan, Premier Lending LLC adapted from the Shirmeyer Rate Market Report.

Mortgage interest rates were mostly flat on the week as Fed Chair Yellen indicated in a speech to central bankers and economists in Jackson Hole that “the case for an increase in the federal funds rate has strengthened in recent months.”  Any rate increase will be data dependent, though.  Economic data was mixed.  Economic data stronger than expected included July New Home Sales, Jobless Claims, July Durable Goods Orders, and the July International Trade Deficit.  New Home Sales had their biggest increase since October of 2007.  Economic data weaker than expected included the June FHFA Home Price Index, July Existing Home Sales, and the University of Michigan Consumer Sentiment Index.  Also of note, Q2 GDP was revised down to a 1.1% annualized rate as expected.  The Treasury auctioned $88 billion of 2 Year Notes, 5 Year Notes, and 7 Year Notes, which were met with mixed demand.  The 7 Year Note auction was the weakest since last February.

The Dow Jones Industrial Average is currently at 18,373, down about 180 points on the week.  The crude oil spot price is currently at $47.56 per barrel, down slightly on the week.  The Dollar strengthened versus the Yen and Euro on the week.

Next week look toward Monday’s Personal Income and Outlays, Tuesday’s S&P Case-Shiller Home Price Index and Consumer Confidence Index, Wednesday’s ADP Employment Report, Chicago Purchasing Managers Index, and Pending Home Sales Index, Thursday’s Jobless Claims and ISM Manufacturing Index, and Friday’s employment report for August and International Trade report as potential market moving events.

Jessica Shanahan

jshanahan@premierlends.com

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