Premier Mortgage Group

Mortgage interest rates improved this past week on the Fed’s FOMC Announcement.  At the conclusion of its FOMC meeting on Wednesday, the Fed announced that they plan to leave the Fed Funds rate at current levels of 0% to 0.25% through the end of 2014, signaling concern regarding the economic recovery.  Previously, the Fed had indicated that it planned to leave the Fed Funds rate at current levels through mid-2013.  The Fed also cut its forecast for 2012 GDP to a range of +2.2% to +2.7% from its previous forecast of +2.5% to +2.9%.  Economic data was mixed.  December Pending Home Sales, December New Home Sales, December Leading Economic Indicators, and the advance report on Q4 GDP were weaker than expected.  The November FHFA Housing Price Index, December Durable Goods Orders, and the University of Michigan Consumer Sentiment Index were stronger than expected.  The Treasury auctioned $99 billion in 2 Year, 5 Year, and 7 Year Notes, which were met with reasonably strong demand.

The Dow Jones Industrial Average is currently at 12,639, down about 80 points on the week.  Crude oil spot prices are currently just under $100 per barrel, up over $1 per barrel on the week.  The Dollar weakened versus the Euro and Yen on the week.

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

Posted in Industry & Market News, Weekly Update