Rates Flat On Limited New Economic Data
premier mortgage group | Friday, February 10th, 2012 | Comments OffMortgage interest rates were mostly flat on the week as there was limited new economic data for markets to digest. Of note, December Consumer Credit increased more than expected. Weekly jobless claims fell by 15k to 358k claims on expectations that claims would increase by 3k. December Wholesale Inventories increased more than expected and the University of Michigan Consumer Sentiment Index fell more than expected. The December Trade Balance was in line with expectations but the trade deficit increased to a six month high. The Treasury auctioned $72 billion in 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met with mixed demand from markets. Also of note, Greece politicians proposed an austerity plan that cuts 150k jobs, cuts the minimum wage by 20% and cuts medical spending. It remains to be seen whether the plan is passed into law and whether the European Central Bank and IMF endorse the plan to provide more financial aid to help Greece avoid default.
The Dow Jones Industrial Average is currently at 12,757, down over 100 points on the week. Crude oil prices are currently at $98.46 per barrel, up slightly on the week. The Dollar weakened versus the Euro and strengthened versus the Yen on the week.
Next week look toward Tuesday’s Retail Sales, Wednesday’s Industrial production and Capacity Utilization, Thursday’s Housing Starts, weekly jobless claims, Producer Price Index, and Philadelphia Fed Survey, and Friday’s Consumer Price Index as potential market moving events.