Premier Mortgage Group

Mortgage interest rates increased slightly this past week largely driven by today’s better than expected jobs report for August.  Today’s report showed that non-farm payrolls fell by 54k on expectations that they would fall by 120k.  Private non-farm payrolls increased by 67k on expectations that they would increase by 44k.  The unemployment rate increased to 9.6%, in line with expectations.  Also, weekly jobless claims fell slightly on expectations that they would increase.  Other positive economic news of note included July Personal Spending, the Case Shiller 20 City Home Price Index, the Chicago Purchasing Managers Index, August Consumer Confidence, the August ISM Manufacturing Index, and July Pending Home Sales.  Economic data weaker than expected included July Construction Spending and the August ISM Services Sector Index.

The Dow Jones Industrial Average is currently at 10,395, up about 450 points on the week.  Crude oil futures are currently trading at $73.54 per barrel, up slightly on the week.  The Dollar weakened versus the Euro and Yen on the week.

Next week look toward Thursday’s International Trade and weekly jobless claims as potential market moving events.  All markets are closed on Monday for Labor Day.   The Treasury will auction $67 billion in 2 year notes, 10 year notes, and 30 year bonds next week.

Posted in Industry & Market News, Weekly Update