Rates Stable on Mixed Economic Data
Mortgage interest rates stayed flat the past week as economic data continued to be mixed. Economic data stronger than expected included June New Home Sales, June Durable Goods Orders, and the July University of Michigan Consumer Sentiment Index. New Home Sales reached their best level since May 2008 and the Consumer Sentiment Index had its strongest reading in the past six years. Economic data weaker than expected included June Existing Home Sales and June Durable Goods Orders excluding transportation orders. Also of note, the Treasury auctioned $99 billion of 2 Year Notes, 5 Year Notes, and 7 Year Notes which were met with okay demand by markets. Corporate earnings have been declining but are still good. In Europe, German manufacturing expanded for the first time since February.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 15,427, down over 100 points on the week. Crude oil spot prices are currently at $104.32 per barrel, down about $4 per barrel on the week. The Dollar weakened versus the Euro and Yen on the week.
Next week look toward Wednesday’s first look at Q2 GDP and FOMC Meeting Announcement, Thursday’s Jobless Claims and ISM Manufacturing Index, and Friday’s employment report for July and Personal Income and Outlays as potential market moving events. Since there will be a lot of economic data released next week volatility will likely be high.
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.