Rates Flat as Economic Data Continues to be Mixed

Mortgage interest rates were mostly flat as economic data continued to be mixed. Economic data stronger than expected included the Chicago Fed National Activity Index, weekly jobless claims, Leading Economic Indicators, and Durable Goods Orders. December Durable Goods Orders were up 2.9% on expectations that they would only be up 0.6%. Economic data weaker than expected included the FHFA House Price Index, PMI Composite Flash, Existing Home Sales, International Trade, New Home Sales, and the first look at Q4 GDP. Q4 GDP was up 2.6% on expectations that it would be up 2.9%. The Treasury auctioned $88 billion of 2 Year Notes, 5 Year Notes, and 7 Year Notes which were met with solid demand. The government shutdown ended earlier this week with a temporary funding measure that expires on February 8.

The Dow Jones Industrial Average is currently at 26,478, up over 400 points on the week. The crude oil spot price is currently at $66.20 per barrel, up over $2 per barrel on the week. The Dollar weakened versus both the Euro and Yen on the week.

Next week look toward Monday’s Personal Income and Outlays, Tuesday’s Case-Shiller Home Price Index and Consumer Confidence Index, Wednesday’s Chicago Purchasing Managers Index, Pending Home Sales Index, and FOMC Meeting Announcement, Thursday’s Jobless Claims, ISM Manufacturing Index, and Construction Spending, and Friday’s employment report for January, Consumer Sentiment Index, and Factory Orders as potential market moving events.