Rates FLAT on Limited Economic Data
Mortgage interest rates were mostly flat week over week as there was not much new economic data for markets to digest. Economic data of note included the July ISM Services Sector Index, the June International Trade Report, and weekly jobless claims, all of which were stronger than expected. The services sector index reached its best level since last February, the trade deficit fell to its lowest level in more than four years, and jobless claims over the past month are at their lowest levels since November of 2007. In Europe, German factory orders increased by the most in eight months and in the U.K. industrial production beat forecasts in June. In China, industrial production increased by 9.7% year over year in July after increasing 8.9% in June. In light of recent economic data here and abroad it appears more likely that the Fed will begin tapering their asset purchases sometime later this year. Also of note, the Treasury auctioned $72 billion in 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met with somewhat soft demand by markets.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 15,391, down over 260 points on the week. Crude Oil spot prices are currently at $104.96 per barrel, down almost $2 per barrel on the week. The Dollar weakened versus the Euro and Yen on the week.
Next week look toward Tuesday’s Retail Sales, Wednesday’s Producer Price Index (PPI), Thursday’s Consumer Price Index (CPI), Jobless Claims, Industrial Production, and Philadelphia Fed Survey, and Friday’s Housing Starts as potential market moving events.
Currently, a Conventional 30 year fixed rate is hovering in the range of 4.375% to 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.