Premier Mortgage Group

Mortgage interest rates were mostly flat on the week as events in Europe continue to dominate the news.  Voters in Greece effectively voted to stay in the European Union last Sunday.  The yield on Spain’s 10 year notes increased to over 7% earlier this week.  German investor confidence fell the most in 14 years.  Euro-area services and manufacturing output contracted for a fifth month in June.  Also of note, Moody’s lowered the credit ratings of 15 U.S. and global banks.  Domestic economic news was mixed.  Economic data better than expected included the June NAHB Housing Market Index, May Building Permits, and May Leading Economic Indicators.  Economic data weaker than expected included May Housing Starts, weekly jobless claims, May Existing Home Sales, and the June Philadelphia Fed Business Index.  The Federal Reserve at the conclusion of its FOMC meeting announced that it would continue to purchase longer dated Treasuries and sell shorter dated Treasuries through the end of the year to keep long-term interest rates low.

The Dow Jones Industrial Average is currently at 12,634, down about 130 points on the week.  Crude oil spot prices are currently at $78.08 per barrel, down almost $6 per barrel on the week.  The Dollar strengthened versus the Euro and Yen on the week.

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

Posted in Industry & Market News, Weekly Update