Rates Up Slightly on Mixed Economic Data
Mortgage interest rates increased slightly this past week as economic data was mixed. Economic data stronger than expected included August Existing Home Sales, the FHFA Home Price Index, and July Leading Economic Indicators. Existing Homes Sales were up 6.5% on expectations that they would be up 2.4%. Economic data weaker than expected included weekly jobless claims and August New Home Sales. New Home Sales were down 13.4% on expectations that they would only be down 2.0%. Also of note, the FOMC Minutes indicated that there was not a consensus as to when to begin tapering Treasury and MBS purchases although markets expect that the Fed will begin tapering in September. In Germany, the Service Sector Index and Manufacturing Sector Index showed expansion. In China, the August Purchasing Managers Index increased to 50.1 from 47.7 in July. Next week the Treasury will auction $34 billion in 2 Year Notes, $35 billion in 5 Year Notes, and $29 billion in 7 Year Notes.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 14,975, down over 100 points in the week. The crude oil spot price is currently at $105.94 per barrel, down over $1 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 Durable Goods Orders, Tuesday’s Consumer Confidence Index, Wednesday’s Pending Home Sales Index, Thursday’s second look at Q2 GDP and Jobless Claims, and Friday’s Personal Income and Outlays and Chicago Purchasing Managers Index as potential market moving events.
Currently, a Conventional 30 year fixed rate is hovering in the range of 4.625% to 4.75 % 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.