Mortgage Rates Increase Slightly Despite Negative Data

Mortgage interest rates increased slightly as economic data continued to be mostly weaker than expected. Economic data weaker than expected included the March NFIB Small Business Optimism Index, February Wholesale Inventories, the March Consumer Price Index (CPI), the March Treasury Budget, Weekly Jobless Claims, March Import Prices, the University of Michigan Consumer Sentiment Index, and the February JOLTS Job Openings report. While weaker than expected, Wholesale Inventories reached their highest level since October 2013. Economic data stronger than expected included the March Producer Price Index (PPI) as well as the core PPI, excluding the food and energy components. PPI was up 3.0% year over year and core PPI was up 2.7% year over year. CPI was up 2.4% year over year and core CPI was up 2.1% year over year. The Treasury auctioned $64 billion of 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met with okay demand. Trade tensions with China have subsided slightly and tensions with Syria have not increased today.

The Dow Jones Industrial Average is currently at 24,429, up almost 500 points on the week. The crude oil spot price is currently at $67.27 per barrel, up over $5 per barrel on the week. The Dollar weakened versus the Euro and strengthened versus the Yen on the week.

Next week look toward Monday’s Retail Sales, Empire State Manufacturing Survey, and Housing Market Index, Tuesday’s Housing Starts and Industrial Production, and Thursday’s Weekly Jobless Claims, Philadelphia Fed Business Outlook Survey, and Leading Economic Indicators as potential market moving events.