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Rates Increase Slightly on Positive Economic Data

| Friday, October 28th, 2016 | Comments Off on Rates Increase Slightly on Positive Economic Data

Mortgage interest rates increased slightly on the week as economic data was mostly stronger than expected. Economic data stronger than expected included the August Case/Shiller Home Price Index, the August FHFA Home Price Index, the September Trade Deficit, September Durable Goods Orders, September Pending Home Sales, and the first look at Q3 GDP. Q3 GDP was up 2.9% on expectations of 2.5%. Economic data weaker than expected included the October Consumer Confidence Index, September New Home Sales, weekly jobless claims, and the University of Michigan Consumer Sentiment Index. It’s unlikely that the Fed will increase the Fed Funds rate at its November FOMC meeting but markets are expecting a rate increase at the December FOMC meeting. The Treasury auctioned $88 billion of 2 Year Notes, 5 Year Notes, and 7 Year Notes, which were met with mixed demand. In the Eurozone, October Manufacturing PMI and Services PMI were both better than expected.

The Dow Jones Industrial Average is currently at 18,233, up about 90 points on the week. The crude oil spot price is currently at $49.50 per barrel, down over $1 per barrel on the week. The Dollar weakened versus the Euro and strengthened versus the Yen on the week.

Next week look toward Monday’s Personal Income and Outlays, Tuesday’s ISM Manufacturing Index and Construction Spending, Wednesday’s FOMC Meeting Announcement, Thursday’s Jobless Claims, Factory Orders, and ISM Services Sector Index, and Friday’s employment report for October and International Trade report as potential market moving events.

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