Mortgage Rates Improve Slightly on Negative Economic Data

Mortgage interest rates improved slightly as economic data was mostly weaker than expected. Economic data weaker than expected included March Personal Income, the April Chicago Purchasing Managers Index, March NAR Pending Home Sales, the April ISM Manufacturing Index, March Construction Spending, Q1 Productivity and Unit Labor Costs, the April ISM Services Sector Index, April Non-Farm Jobs, April Private Jobs, and April Average Hourly Earnings. Economic data stronger than expected included April ADP Private Jobs, Weekly Jobless Claims, March Factory Orders, and the April Unemployment Rate. Unemployment fell to 3.9% on expectations of 4.0%. As expected, the Fed left the Fed Funds Rate unchanged after its FOMC Meeting. It also indicated that future increases will likely be gradual, calling into question whether the Fed will raise rates three more times this year.

The Dow Jones Industrial Average is currently at 24,145, down about 165 points on the week. The crude oil spot price is currently at $69.03 per barrel, up about $1 per barrel on the week. The Dollar strengthened versus the Euro and Yen on the week.

Next week look toward Monday’s Consumer Credit, Tuesday’s NFIB Small Business Optimism Index and JOLTS Job Openings, Wednesday’s Producer Price Index (PPI) and Wholesale Trade, Thursday’s Consumer Price Index (CPI) and Weekly Jobless Claims, and Friday’s Import and Export Prices and Consumer Sentiment Index as potential market moving events.