Premier Mortgage Group

Mortgage interest rates were mostly flat on the week despite generally weaker than expected economic data.  Of note, July Existing Home Sales fell 27.2% to its lowest level since June of 1995 on expectations that sales would fall by 13.0%.  Year over year, sales were down 25.5% and there is now a 12.5 month supply of existing homes.  July New Home Sales were expected to increase by 3.0%.  Instead, sales fell by 12.4%.  There is now a 9.1 month supply of new homes.  July Durable Goods Orders increased by only 0.3% on expectations that orders would increase by 3.0%.  Excluding transportation orders, durable goods orders fell by 3.8% on expectations that they would increase by 0.5%.  The University of Michigan Consumer Sentiment Index was slightly weaker than expected, reported at 68.9 on expectations of 70.0.  On a positive note, weekly jobless claims fell by 31k on expectations that they would only fall by 15k.

The Dow Jones Industrial Average is currently at 10,091, up about 20 points on the week.  Crude oil futures are currently trading at $73.82 per barrel, up slightly on the week.  The Dollar weakened versus both the Yen and Euro on the week.

Next week look toward Monday’s Personal Income and Outlays, Wednesday’s ISM Manufacturing Index, Thursday’s weekly jobless claims and Pending Home Sales Index, and Friday’s employment report for August as potential market moving events.

Posted in Industry & Market News, Weekly Update