Rates UP Slightly on Mixed Economic Data
Mortgage interest rates increased slightly again this past week as economic data continued to be mixed. Economic data stronger than expected included June Pending Home Sales, the July ADP Private Jobs Report, the advance look at Q2 GDP, weekly jobless claims, the July ISM Manufacturing Index, the July unemployment rate, and June Personal Spending. Weekly jobless claims fell to their lowest level in five years and the ISM Manufacturing Index increased to its highest level since June of 2011. Unemployment fell to 7.4%. Economic data weaker than expected included July Consumer Confidence, the July Chicago Purchasing Managers Index, June Construction Spending, July Non-Farm Jobs, July Non-Farm Private Jobs, June Personal Income, and June Factory Orders. Markets expect that the Fed will begin tapering their MBS and Treasury purchases soon but it is still uncertain whether this tapering will begin in September.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 15,566, up slightly on the week. Crude oil spot prices are currently at $106.77 per barrel, up over $2 per barrel on the week. The Dollar weakened versus the Euro and strengthened versus the Yen on the week.
Next week look toward Monday’s ISM Services Sector Index, Tuesday’s International Trade, and Thursday’s Jobless Claims as potential market moving events. Also of note, the Treasury auctions 3 Year Notes, 10 Year Notes, and 30 Year Bonds next week.
Currently, a Conventional 30 year fixed rate is hovering in the range of 4.5 % 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, lock period and property type.