Premier Lending Weekly Mortgage Market Update May 17, 2013

Posted by on Friday, May 17th, 2013 at 12:35pm.

Rates Increase Despite Mostly Soft Economic Data
Mortgage interest rates increased slightly again this past week despite mostly weaker than expected economic data.  Weaker than expected Economic data included March Business Inventories, the May Empire State Manufacturing Index, April Industrial Production, April Capacity Utilization, the May Philadelphia Fed Business Index, weekly jobless claims, and April Housing Starts.  Stronger than expected Economic data included April Retail Sales, April Building Permits, the University of Michigan Consumer Sentiment Index, and April Leading Economic Indicators.  Also of note, inflation data continues to be tame.  The April Producer Price Index fell 0.7% and the April Consumer Price Index fell 0.4%, its largest decline since December of 2008.  Year over year, the Consumer Price Index is up just 1.1%.  Excluding the food and energy components, core CPI is up just 1.7% year over year.  In Europe, Q1 GDP fell 0.2% on expectations that it would fall 0.1%.

Wall Street Commentary

The Dow Jones Industrial Average hit 15,292 this morning, up about 170 points on the week.  Crude oil spot prices are currently at $95.35 per barrel, down slightly on the week.  The Dollar strengthened versus the Yen and Euro on the week.

Next week look toward Wednesday’s Existing Home Sales and FOMC Minutes, Thursday’s jobless claims and New Home Sales, and Friday’s Durable Goods Orders as potential market moving events.


 Currently, a Conventional 30 year fixed rate is hovering in the range of 3.75% 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. 

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