Rates Flat on Mixed Economic Data

Mortgage interest rates were flat on the week as economic data was mixed. Economic data weaker than expected included MBA Mortgage Applications, Employment Situation, EIA Petroleum Status Report and the ADP Employment Report. Economic data stronger than expected include Jobless Claims, ISM Non-Manufacturing Index and the ISM Manufacturing Index. Economic data that came in as expected included International Trade Deficit, Construction Spending and the PMI Manufacturing Index. Both non-farm and private payrolls were revised down and the unemployment rate continues to shrink. This is creating wage pressures that are leading some to believe that a rate hike at the December FOMC meeting may be back on the table.

The Dow Jones Industrial Average is currently at 22,759, up slightly on the week. The crude oil spot price is currently at $49.33 per barrel, down over $2 per barrel on the week. The Dollar strengthened versus the Yen and Euro on the week.

Next week look toward Tuesday’s NFIB Small Business Optimism Index, Wednesday’s JOLTS and FOMC Minutes. Thursday’s Jobless Claims, PPI-FD, EIA Petroleum Status Report and Treasury Budget and Friday’s Consumer Price Index, Retails Sales, Business Inventories and Consumer Sentiment as potential market moving events.