Premier Mortgage Group

Mortgage interest rates were mostly flat this past week as economic data was limited.  Of note, May Consumer Credit increased more than expected, the US trade deficit in May was smaller than expected, weekly jobless claims fell more than expected, and the University of Michigan Consumer Sentiment Index fell to its lowest level since last December.  The Treasury auctioned $64 billion in 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met with strong demand from markets.  The FOMC minutes did not indicate that another round of quantitative easing is being considered at this point.  Moody’s cut Italy’s credit rating to Baa2, two notches above junk status.  China’s GDP increased 7.6% last quarter from a year earlier and this rate of increase is at a three-year low.  In Europe, Euro-area industrial production unexpectedly increased by 0.6% in May supported by growth in Germany.

The Dow Jones Industrial Average is currently at 12,726, up slightly on the week.  Crude oil spot prices are currently at $87.17 per barrel, up just over $3 per barrel on the week.  The Dollar strengthened versus the Euro and weakened versus the Yen on the week.

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

Posted in Industry & Market News, Weekly Update