Premier Mortgage Group

Mortgage interest rates improved slightly on the week as economic data was mostly weaker than expected.  Economic data weaker than expected included May Retail Sales excluding automobile sales, May Industrial Production, May Capacity Utilization, and the University of Michigan Consumer Sentiment Index.  In Europe, the Euro-area economy contracted 0.2% in the first quarter, extending its recession into a sixth quarter.  In China, industrial production was below forecasts on a year over year basis.  The World Bank cut its forecast for global economic growth from 2.4% to 2.2%.  Inflation data in the U.S. was mostly tame.  May Export Prices Import Prices were weaker than expected.  The May Producer Price Index (PPI) increased more than expected but core PPI, excluding the food and energy components, increased only 0.1%.  As a result, there is increasing belief that the Fed may not taper its current quantitative easing as soon as expected.

The Dow Jones Industrial Average is currently at 15,105, down almost 150 points on the week.  Crude oil spot prices are currently at $97.70 per barrel, up slightly on the week.  The Dollar weakened versus the Yen and Euro on the week.

Next week look toward Tuesday’s Consumer Price Index (CPI) and Housing Starts, Wednesday’s FOMC Meeting Announcement, and Thursday’s Jobless Claims, Existing Home Sales, and Philadelphia Fed Survey as potential market moving events.

Mortgage interest rates were somewhat flat week over week despite high volatility as today’s employment report for May was in line with expectations.  May Non-Farm Jobs increased by 175k on expectations that they would increase by 167k.  Non-Farm Private Jobs increased by 178k, the same amount as expected.  The unemployment rate increased to 7.6% on expectations that it would remain unchanged at 7.5% as 420k people entered the job market but only 315k found jobs.  As a result of today’s employment report, it is still uncertain whether the Fed will soon begin to curtail the existing quantitative easing in the form of $85 billion in Treasury and Mortgage Backed Security purchases per month.  Other economic data was mostly weaker than expected.  Data weaker than expected included the May ISM Manufacturing Index, April Construction Spending, the May ADP Private Jobs Estimate, April Factory Orders, and the May ISM Services Sector Index.

The Dow Jones Industrial Average is currently at 15,219, up about 100 points on the week.  Crude oil spot prices are currently at $95.57 per barrel, up almost $4 per barrel on the week.  The Dollar weakened versus the Yen and Euro on the week.

Next week look toward Thursday’s Jobless Claims and Retail Sales and Friday’s Producer Price Index (PPI) and Industrial Production as potential market moving events.

Mortgage interest rates increased again this past week sparked by Congressional testimony from Fed Chairman Ben Bernanke before the Joint Economic Committee.  In his testimony, Bernanke said that the Fed may begin thinking about ending the current quantitative easing in the next three or four FOMC meetings.  The current quantitative easing includes $85 billion in monthly purchases of Treasuries and Mortgage Backed Securities.  The FOMC Minutes also revealed increased discussion within the Fed of reducing the current quantitative easing.  Economic data this past week was mostly stronger than expected.  Weekly jobless claims, April New Home Sales, and April Durable Goods Orders were stronger than expected.  New Home Sales were up 15% year over year, its largest increase since 1963.  April Existing Home Sales, though, were only up 0.6% on expectations that they would be up 2.6%.

The Dow Jones Industrial Average is currently at 15,241, down over 100 points on the week.  Crude oil spot prices are currently at $93.49 per barrel, down over $2 per barrel on the week.  The Dollar weakened versus the Euro and Yen on the week.

Next week look toward Thursday’s second look at Q1 GDP and weekly jobless claims and Friday’s Personal Income and Outlays as potential market moving events.  Bond and Equity Markets are closed Monday for Memorial Day.

Mortgage interest rates increased slightly again this past week despite mostly weaker than expected economic data.  Economic data weaker than expected included March Business Inventories, the May Empire State Manufacturing Index, April Industrial Production, April Capacity Utilization, the May Philadelphia Fed Business Index, weekly jobless claims, and April Housing Starts.  Economic data stronger than expected included April Retail Sales, April Building Permits, the University of Michigan Consumer Sentiment Index, and April Leading Economic Indicators.  Also of note, inflation data continues to be tame.  The April Producer Price Index fell 0.7% and the April Consumer Price Index fell 0.4%, its largest decline since December of 2008.  Year over year, the Consumer Price Index is up just 1.1%.  Excluding the food and energy components, core CPI is up just 1.7% year over year.  In Europe, Q1 GDP fell 0.2% on expectations that it would fall 0.1%.

The Dow Jones Industrial Average is currently at 15,292, up about 170 points on the week.  Crude oil spot prices are currently at $95.35 per barrel, down slightly on the week.  The Dollar strengthened versus the Yen and Euro on the week.

Next week look toward Wednesday’s Existing Home Sales and FOMC Minutes, Thursday’s jobless claims and New Home Sales, and Friday’s Durable Goods Orders as potential market moving events.

Mortgage interest rates increased slightly again this past week despite limited economic data for markets to digest.  Economic data of note included weekly jobless claims which fell 4k on expectations that they would increase by 12k.  Weekly jobless claims are at their lowest level in five years.  The four week average of claims fell to 336,750, its lowest level since November of 2007.  Also of note, the Treasury auctioned $69 billion of 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met by markets with okay demand.  There is increasing talk that the Fed may curtail its current quantitative easing sooner than expected due to the recent positive employment numbers.  In Germany, factory orders increased more than expected and in China, exports increased by 14.7% on expectations that they would increase by 9.0%.  Poland, Hungary, and Australia cut their base lending rates this past week.

The Dow Jones Industrial Average is currently at 15,092, up over 100 points on the week.  Crude oil spot prices are currently at $93.79 per barrel, down almost $2 per barrel on the week.  The Dollar strengthened versus the Euro and Yen on the week.

Next week look toward Monday’s Retail Sales, Wednesday’s Producer Price Index (PPI) and Industrial Production, and Thursday’s Consumer Price Index (CPI), Housing Starts, Jobless Claims, and Philadelphia Fed Survey as potential market moving events.

Mortgage interest rates increased slightly this past week largely on today’s April employment report.  The unemployment rate fell to 7.5% on expectations that it would be unchanged at 7.6%.  The unemployment rate is at its lowest level in five years.  Non-Farm Payrolls increased by 165k on expectations that they would increase by 153k.  February and March payrolls were revised higher as well.  Other economic data was mixed.  Economic reports stronger than expected included March Pending Home Sales, April Consumer Confidence, the US Trade Balance, and weekly jobless claims.  Economic reports weaker than expected included March Personal Income, the April Chicago Purchasing Managers Survey, the April ADP Employment Estimate, March Construction Spending, the April ISM Manufacturing Index, March Factory Orders, and the April ISM Service Sector Index.  Also of note, the European Central Bank cut its base lending by 0.25% and the Federal Reserve reiterated its commitment to its current quantitative easing.

The Dow Jones Industrial Average is currently at 15,006, up almost 300 points on the week.  Crude oil spot prices are currently at $95.37 per barrel, up over $2 per barrel on the week.  The Dollar strengthened versus the Yen and weakened versus the Euro on the week.

Next week look toward Thursday’s weekly jobless claims as a potential market moving event.  Also, the Treasury will auction $72 billion of 3 Year Notes, 10 Year Notes, and 30 Year Bonds.

Mortgage interest rates improved slightly on the week as economic data was mixed.  Economic data stronger than expected included weekly jobless claims and the University of Michigan Consumer Sentiment Index.  Economic data weaker than expected included March Existing Home Sales, March Durable Goods Orders, and the first look at Q1 GDP.  During Q1, the drop in defense spending outweighed the biggest increase in consumer spending in two years.  Economic reports in line with expectations included March New Home Sales and the FHFA housing price index.  The Treasury auctioned $99 billion in 2 Year Notes, 5 Year Notes, and 7 Year Notes which were met by markets with okay demand.  In Europe, services and manufacturing shrank in the euro area for the 15^th straight month in April.

The Dow Jones Industrial Average is currently at 14,716, up almost 170 points on the week.  Crude oil spot prices are currently at $93.10 per barrel, up over $5 per barrel on the week.  The Dollar weakened versus the Yen and strengthened versus the Euro on the week.

Next week look toward Monday’s Personal Income and Outlays, Wednesday’s ISM Manufacturing Index and FOMC Announcement, Thursday’s International Trade and jobless claims, and Friday’s employment report for April as potential market moving events.  Markets will closely watch the FOMC Announcement for any indication of when the current quantitative easing may be lifted.

Mortgage interest rates were flat again this past week as economic data continued to be mostly weaker than expected.  Economic data weaker than expected included the April New York Empire State Manufacturing Survey, the April NAHB Housing Market Index, March Building Permits, weekly jobless claims, March Leading Economic Indicators, and the April Philadelphia Fed Business Index.  Economic data stronger than expected included March Housing Starts, March Industrial Production, and March Capacity Utilization.  Inflation data was tame as the March Consumer Price Index fell 0.2% on expectations that it would be unchanged.  Year over year, CPI is up just 1.50%, lower than the Fed’s 2.0% target.  Also of note, China’s GDP grew by only 7.7% during the first quarter, its lowest rate of growth in 13 years.  The IMF lowered its outlook for global economic growth from +3.5% to +3.3%.

The Dow Jones Industrial Average is currently at 14,484, down almost 400 points on the week.  Crude oil spot prices are currently at $88.18 per barrel, down almost $3 per barrel on the week.  The Dollar strengthened versus the Yen and weakened versus the Euro on the week.

Next week look toward Monday’s Existing Home Sales, Tuesday’s New Home Sales, Wednesday’s Durable Goods Orders, Thursday’s jobless claims, and Friday’s first look at Q1 GDP as potential market moving events.

Mortgage interest rates were mostly flat on the week as economic data continued to be soft.  Economic data weaker than expected included February Wholesale Inventories, March Retail Sales, the April University of Michigan Consumer Sentiment Index, and February Business Inventories.  Retail Sales fell by the most in nine months and the Consumer Sentiment Index fell to its lowest level since December 2011.  Inflation data was tame as the Producer Price Index was up just 1.1% year over year and core PPI, excluding the food and energy components, was up just 1.7% year over year.  The Treasury auctioned $66 billion in 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met by markets with somewhat weak demand.  On the flip side, weekly jobless claims fell more than expected.  Also of note, there are increasing discussions at the Fed regarding when to pare back the current monthly purchases of $85 billion in Treasuries and Mortgage Backed Securities.

The Dow Jones Industrial Average is currently at 14,793, up almost 230 points on the week.  Crude oil spot prices are currently at $90.43 per barrel, down over $2 per barrel on the week.  The Dollar strengthened versus the Yen and weakened versus the Euro on the week.

Next week look toward Tuesday’s Consumer Price Index (CPI), Housing Starts, and Industrial Production and Thursday’s jobless claims and Philadelphia Fed Survey as potential market moving events.

Mortgage interest rates improved this past week as economic data was mostly weaker than expected.  Economic data weaker than expected included the March ISM Manufacturing Index, the March ADP Employment Estimate, the March ISM Services Sector Index, weekly jobless claims, March Non-Farm Payrolls, and March Non-Farm Private Payrolls.  Non-Farm Payrolls were expected to increase by 193k.  As reported, they only increased by 88k.  Non-Farm Private Payrolls were expected to increase by 200k.  As reported, they only increased by 95k.  The March Unemployment Rate fell to 7.6%, but this was mainly due to a decrease in the labor force.  Also of note, North Korea’s threats toward South Korea and the U.S. have driven money to the relative safety of U.S. Treasuries.  On a positive note, February Construction Spending, February Factory Orders, and the February US Trade Balance were slightly better than expected.

The Dow Jones Industrial Average is currently at 14,465, down over 100 points on the week.  Crude oil spot prices are currently at $92.30 per barrel, down almost $5 per barrel on the week.  The Dollar strengthened versus the Yen and weakened versus the Euro on the week.

Next week look toward Wednesday’s FOMC Minutes, Thursday’s jobless claims, and Friday’s Producer Price Index and Retail Sales as potential market moving events.