Rates Up Slightly on Positive Economic Data

Mortgage interest rates increased slightly again this past week as economic data continued to be mostly stronger than expected. Economic data stronger than expected included the Chicago Fed National Activity Index, September Durable Goods Orders, the August FHFA Home Price Index, September New Home Sales, weekly jobless claims, and the first look at Q3 GDP. New Home Sales had their highest percentage increase in 28 years. Q3 GDP increased 3.0% which may be skewed by the recent hurricanes. Economic data weaker than expected included the September U.S. Trade Deficit, September Pending Home Sales, and the University of Michigan Consumer Sentiment Index. The Treasury auctioned $88 billion of 2 Year Notes, 5 Year Notes, and 7 Year Notes, which were met with somewhat soft demand. President Trump will likely select the next Federal Reserve Chair by next Friday. Tax cuts continue to be debated in Congress.

The Dow Jones Industrial Average is currently at 23,398, up about 70 points on the week. The crude oil spot price is currently at $53.44 per barrel, up almost $2 per barrel on the week. The Dollar strengthened versus the Euro and Yen on the week.

Next week look toward Monday’s Personal Income and Outlays, Tuesday’s Case-Shiller Home Price Index, Consumer Confidence, and Chicago Purchasing Managers Index, Wednesday’s PMI Manufacturing Index, ISM Manufacturing Index, and FOMC Meeting Announcement, Thursday’s Jobless Claims, and Friday’s employment report for October, International Trade, Factory Orders, and ISM Services Sector Index as potential market moving events.