Rates Increase Slightly on Mixed Economic Data

Mortgage interest rates increased slightly on the week on mixed economic data. Economic data stronger than expected included the July Consumer Confidence Index, June Durable Goods Orders, the June U.S. Trade Deficit, and the University of Michigan Consumer Sentiment Index. Economic data weaker than expected included June Existing Home Sales, the May FHFA House Price Index, the May Case Shiller Home Price Index, June New Home Sales, weekly jobless claims, the Q2 price index, and the Q2 employment cost index. The first look at Q2 GDP was in line with expectations, up 2.6%. As expected, the Fed left the Fed Funds rate unchanged after its FOMC meeting. The Fed indicated that inflation is unlikely to reach its 2.0% target for the medium term. The Treasury auctioned $88 billion of 2 Year Notes, 5 Year Notes, and 7 Year Notes, which were met with strong demand.

The Dow Jones Industrial Average is currently at 21,780, up about 200 points on the week. The crude oil spot price is currently at $49.69 per barrel, up over $4 per barrel on the week. The Dollar weakened versus the Euro and Yen on the week.

Next week look toward Monday’s Chicago Purchasing Managers Index and Pending Home Sales Index, Tuesday’s Personal Income and Outlays, ISM Manufacturing Index, and Construction Spending, Wednesday’s ADP Employment Report, Thursday’s Jobless Claims, Factory Orders, and ISM Services Sector Index, and Friday’s employment report for July and International Trade as potential market moving events.