RATES FLAT DESPITE POSITIVE ECONOMIC DATA
Mortgage interest rates were mostly flat again this past week despite generally positive economic data and supply pressure from Treasury debt auctions of $109 Billion. Economic reports better than expected included the Case Shiller Home Price Index for June, August Consumer Confidence, June Durable Goods Orders, July New Home Sales, the second look at Q2 GDP, and the University of Michigan Consumer Sentiment Index. July Durable Goods Orders jumped 4.9% on expectations that they would increase 3.2%. This is the largest month over month increase since July 2007. July New Home Sales jumped 9.6% on expectations that they would increase 1.5%. This is the largest month over month increase since February of 2005.
The Dow Jones Industrial Average is currently at 9,533, up slightly on the week. Crude oil spot prices are currently trading at just under $73 per barrel, down about $1 per barrel on the week. The Dollar continued to weaken versus the Yen and Euro this past week. Also of note, President Obama announced that he will re-appoint Federal Reserve Chairman Ben Bernanke to another four year term.
Next week look toward Tuesday’s ISM Manufacturing Index, Thursday’s weekly jobless claims, and Friday’s employment report for August as potential market moving events.