Rates Increase Slightly Despite Limited Economic
Data Mortgage interest rates increased slightly again this past week despite limited economic data for markets to digest. Economic data of note included weekly jobless claims which fell 4k on expectations that they would increase by 12k. Weekly jobless claims are at their lowest level in five years. The four week average of claims fell to 336,750, its lowest level since November of 2007. Also of note, the Treasury auctioned $69 billion of 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met by markets with okay demand. There is increasing talk that the Fed may curtail its current quantitative easing sooner than expected due to the recent positive employment numbers. In Germany, factory orders increased more than expected and in China, exports increased by 14.7% on expectations that they would increase by 9.0%. Poland, Hungary, and Australia cut their base lending rates this past week.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 15,092, up over 100 points on the week. Crude oil spot prices are currently at $93.79 per barrel, down almost $2 per barrel on the week. The Dollar strengthened versus the Euro and Yen on the week.
Next week look toward Monday’s Retail Sales, Wednesday’s Producer Price Index (PPI) and Industrial Production, and Thursday’s Consumer Price Index (CPI), Housing Starts, Jobless Claims, and Philadelphia Fed Survey as potential market moving events.
Mortgage interest rates improved slightly on the week. Currently, a Conventional 30 year fixed rate is hovering in the range of 3.625% to 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.