Rates Flat Despite Weaker than Expected Economic Data Mortgage interest rates were flat again this past week as economic data continued to be mostly weaker than expected. Economic data weaker than expected included the April New York Empire State Manufacturing Survey, the April NAHB Housing Market Index, March Building Permits, weekly jobless claims, March Leading Economic Indicators, and the April Philadelphia Fed Business Index. Economic data stronger than expected included March Housing Starts, March Industrial Production, and March Capacity Utilization. Inflation data was tame as the March Consumer Price Index fell 0.2% on expectations that it would be unchanged. Year over year, CPI is up just 1.50%, lower than the Fed’s 2.0% target. Also of note, China’s GDP grew by only 7.7% during the first quarter, its lowest rate of growth in 13 years. The IMF lowered its outlook for global economic growth from +3.5% to +3.3%.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 14,484, down almost 400 points on the week. Crude oil spot prices are currently at $88.18 per barrel, down almost $3 per barrel on the week. The Dollar strengthened versus the Yen and weakened versus the Euro on the week.
Next week look toward Monday’s Existing Home Sales, Tuesday’s New Home Sales, Wednesday’s Durable Goods Orders, Thursday’s jobless claims, and Friday’s first look at Q1 GDP as potential market moving events.
Mortgage interest rates improved slightly on the week. Currently, a Conventional 30 year fixed rate is hovering in the range of 3.5% to 3.625% with no points.
** Mortgage rates are subject to daily market fluctuations and can change without notice. Mortgage rates are also effected by down payment, occupancy, loan amount, credit score and property type.
Premier Lending LLC
Owner and Founder
RE/MAX of Boulder