Cherry Creek Mortgage
Straight Stats 20 October 2017

Rates Increase on Mostly Positive Economic Data

Mortgage interest rates increased this past week as economic data was mostly stronger than expected.  Economic data stronger than expected included the New York Empire State Manufacturing Index, September Import and Export Prices, September Industrial Production, the October NAHB Housing Market Index, weekly jobless claims, the October Philadelphia Fed Business Index, and September Existing Home Sales.  Weekly jobless claims fell to their lowest level in 44 years.  Economic data weaker than expected included September Capacity Utilization, September Housing Starts and Building Permits, and September Leading Economic Indicators.  The Senate approved the budget resolution for the 2018 fiscal year, which will likely pave the way for tax cuts which may add $1.5 trillion to the deficit over the next 10 years.  President Trump is in the process of selecting a new Fed Chair to assume the role next February when Yellen’s term ends.

 

The Dow Jones Industrial Average is currently at 23,230, up about 360 points on the week.  The crude oil spot price is currently at $51.41 per barrel, up slightly on the week.  The Dollar strengthened versus the Euro and Yen on the week.

 

Next week look toward Tuesday’s PMI Composite Flash, Wednesday’s Durable Goods Orders, FHFA House Price Index, and New Home Sales, Thursday’s International Trade, Jobless Claims, and Pending Home Sales Index, and Friday’s first look at Q3 GDP and Consumer Sentiment Index as potential market moving events.