Rates Increase Slightly on Mixed Data

Mortgage interest rates increased slightly this past week as economic data was mixed. Economic data stronger than expected included the December ISM Manufacturing Index, November Construction Spending, December Auto and Truck Sales, December ADP Private Jobs, the December PMI Services Sector Index, and November Factory Orders. Economic data weaker than expected included weekly jobless claims, December Non-Farm Payrolls and Private Jobs, the November Trade Deficit, and the December ISM Services Sector Index. The Unemployment Rate was 4.1% as expected. Average Hourly Earnings increased 0.3% in December and 2.5% year over year as expected. The temporary spending measure expires on January 19. President Trump would like to increase spending for infrastructure projects. It appears that the Fed is still on track to increase the Fed Funds rate two or three times this year.

The Dow Jones Industrial Average is currently at 25,163, up over 400 points on the week. The crude oil spot price is currently at $61.26 per barrel, up $1 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 Consumer Credit, Wednesday’s Wholesale Trade, Thursday’s Jobless Claims and Producer Price Index (PPI), and Friday’s Consumer Price Index (CPI), Retail Sales, and Business Inventories as potential market moving events.