By Jessica Shanahan, Premier Lending LLC adapted from the Shirmeyer Rate Market Report.
Mortgage interest rates were mostly flat week over week as the European Central Bank (ECB) announced a stimulus plan. The ECB will purchase 60 billion Euros of public and private securities per month starting in March and running through September of 2016 to hopefully ward off deflation and stimulate the Euro area economies. Economic data was mixed. Economic data stronger than expected included December Housing Starts, the FHFA Housing Price Index, and December Leading Economic Indicators. The FHFA Housing Price Index was up 5.3% year over year. Economic data weaker than expected included the January NAHB Housing Market Index, December Building Permits, weekly jobless claims, and December Existing Home Sales. Existing Home Sales were down 3.1% year over year. Also of note, the IMF reduced its global growth forecast for 2015 to 3.5%. Greece holds elections on the 25th which may determine whether it stays in the EU.
The Dow Jones Industrial Average is currently at 17,762, up about 150 points on the week. The crude oil spot price is currently $46.13 per barrel, down over $2 per barrel on the week. The Dollar strengthened versus the Euro and Yen on the week.
Next week look toward Tuesday’s Durable Goods Orders, New Home Sales, and Consumer Confidence Index, Wednesday’s FOMC Meeting Announcement, Thursday’s Jobless Claims and Pending Home Sales Index, and Friday’s first look at Q4 GDP as potential market moving events.
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