Rates Flat on Weaker than Expected Economic Data
Mortgage interest rates were mostly flat on the week as economic data continued to be soft. Economic data weaker than expected included February Wholesale Inventories, March Retail Sales, the April University of Michigan Consumer Sentiment Index, and February Business Inventories. Retail Sales fell by the most in nine months and the Consumer Sentiment Index fell to its lowest level since December 2011. Inflation data was tame as the Producer Price Index was up just 1.1% year over year and core PPI, excluding the food and energy components, was up just 1.7% year over year. The Treasury auctioned $66 billion in 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met by markets with somewhat weak demand. On the flip side, weekly jobless claims fell more than expected. Also of note, there are increasing discussions at the Fed regarding when to pare back the current monthly purchases of $85 billion in Treasuries and Mortgage Backed Securities.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 14,793, up almost 230 points on the week. Crude oil spot prices are currently at $90.43 per barrel, down over $2 per barrel on the week. The Dollar strengthened versus the Yen and weakened versus the Euro on the week.
Mortgage interest rates improved slightly on the week. Currently, a Conventional 30 year fixed rate is hovering around 3.625% with no points.
** Mortgage rates are subject to daily market fluctuations and can change without notice. Mortgage rates are also affected by down payment, occupancy, loan amount, credit score and property type.
Premier Lending LLC
Owner and Founder
RE/MAX of Boulder