Rates Improve Slightly on Mixed Economic Data
Mortgage interest rates improved slightly this past week on mixed economic data. Economic data stronger than expected included the July Empire State Manufacturing Index, May Business Inventories, June Capacity Utilization, the July NAHB Housing Index, the July Philadelphia Fed Business Index, and weekly jobless claims. The NAHB Housing Index reached its highest level since January of 2006. Economic data weaker than expected included June Retail Sales, June Housing Starts and Building Permits, and June Leading Economic Indicators. The June Consumer Price Index increased slightly more than expected, but year over year is up just 1.8%, below the Fed’s 2.0% target. Also of note, Fed Chairman Ben Bernanke testified before the House and Senate. He reiterated that any asset purchase tapering will be data dependent. In China, the economy expanded by 7.5% during Q2 after expanding by 7.7% during Q1.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 15,513, up almost 50 points on the week. Crude oil spot prices are currently at $108.48 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 Existing Home Sales, Wednesday’s New Home Sales, Thursday’s Durable Goods Orders and Jobless Claims, and Friday’s Consumer Sentiment Index as potential market moving events.
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.