Rates Improve on Bernanke Comments, FOMC Minutes
Mortgage interest rates improved this past week on comments from Fed Chairman Ben Bernanke and the release of the FOMC Minutes from the June 19 FOMC meeting. Bernanke indicated that “highly accommodative monetary policy for the foreseeable future is what’s needed” and the FOMC Minutes showed that officials would want to see more signs of job growth before beginning to taper their $85 billion per month in bond purchases. Economic data was sparse. May Consumer Credit increased by $19.6 billion on expectations that consumer credit would increase by $13 billion. This was the largest increase in consumer credit in a year. May Wholesale Inventories fell more than expected, weekly jobless claims increased more than expected, and the June Producer Price Index increased more than expected. The Treasury auctioned $66 billion in 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met with okay demand by markets.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 15,458, up over 300 points on the week. Crude oil spot prices are currently at $105.41 per barrel, up over $2 per barrel on the week. The Dollar weakened versus the Euro and Yen on the week.
Next week look toward Monday’s Retail Sales, Tuesday’s Consumer Price Index (CPI) and Industrial Production, Wednesday’s Housing Starts, and Thursday’s Jobless Claims and Philadelphia Fed Survey as potential market moving events.
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.