Mortgage interest rates increased slightly again this past week as economic data was mixed. Economic data stronger than expected included the June ISM Manufacturing Index, the June ISM Services Sector Index, June Non-Farm Jobs, and June Private Jobs. Non-Farm Jobs increased by 222k on expectations of 170k; Private Jobs increased by 187k on expectations of 164k. Economic data weaker than expected included May Construction Spending, May Factory Orders, June ADP Private Jobs, weekly jobless claims, May International Trade, the June unemployment rate, and June Average Hourly Earnings. It appears likely that the Fed will begin reducing its holdings of Treasuries and Mortgage Backed Securities in September by not reinvesting the principal payments of its mortgages which will likely pressure rates upward. North Korea launched a missile capable of reaching Alaska, increasing global tensions.
The Dow Jones Industrial Average is currently at 21,383, up slightly on the week. The crude oil spot price is currently at $44.12 per barrel, down over $1 per barrel on the week. The Dollar strengthened versus the Euro and Yen on the week.
Next week look toward Monday’s Consumer Credit, Tuesday’s NFIB Small Business Optimism Index and Wholesale Trade, Wednesday’s Beige Book, Thursday’s Jobless Claims and Producer Price Index (PPI), and Friday’s Consumer Price Index (CPI), Retail Sales, Industrial Production, Business Inventories, and Consumer Sentiment Index as potential market moving events.