Rates Improve Slightly on Mixed Economic Data
Mortgage interest rates improved slightly this past week as economic data continued to be mixed. Economic data stronger than expected included August Consumer Confidence, the University of Michigan Consumer Sentiment Index, and the second look at Q2 GDP. Q2 GDP increased by an annualized rate of 2.50% on expectations that it increased by 2.1%.
Economic data weaker than expected included July Durable Goods Orders, July Pending Home Sales, July Personal Income, and July Personal Spending. Markets continue to expect the Fed to begin tapering its monthly purchases of Treasuries and Mortgage Backed Securities in September.
Also of note:
- The U.S. is considering taking military action against Syria in response to their use of chemical weapons against their own people. Any military action may result in a flight to the safety of U.S. Treasuries.
- It appears that the Treasury will run out of money by mid-October so another debt limit debate looms. The Treasury auctioned $98 billion of 2 Year Notes, 5 Year Notes, and 7 Year Notes this past week which were met with somewhat weak demand.
Wall Street Commentary
The Dow Jones Industrial Average is currently 14,807, down about 200 points on the week. The crude oil spot price is currently at $108.10, up almost $2 per barrel on the week. The Dollar strengthened versus the Euro and weakened versus the Yen on the week.
Next week look toward Tuesday’s ISM Manufacturing Index, Wednesday’s International Trade, Thursday’s Jobless Claims, and Friday’s employment report for August as potential market moving events. All U.S. markets are closed on Monday for Labor Day.
Currently, a Conventional 30 year fixed rate is hovering in the range of 4.5% to 4.625 % 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, lock period and property type.