Market Comment
Mortgage bond prices finished the week lower which put upward pressure on rates. Existing home sales printed at 5.38M units. This was lower than the expected 5.45M. Housing prices continued to climb, according to the FHFA Housing Price Index prices rose 0.2% in May and were up 6.4% over the last 12 months. New home sales printed at 631K vs. the expected 670K. Weekly jobless claims printed at 217K and continuing claims, a summation of all receiving benefits, at 1,745K. Claims were expected at 215K and continuing claims at 1,751K. Durable goods orders rose 1%, much weaker than the expected 3% increase. We ended the week worse by 1/8 to 1/4 of a discount point.
LOOKING AHEAD
EconomicIndicator
ReleaseDate & Time
ConsensusEstimate
Analysis
Tuesday, July 31, 8:30 am, et
Up 0.3%, Up 0.2%
Up 0.2%
Up 0.6%
Tuesday, July 31, 10:00 am, et
126.5
Wednesday, Aug. 1, 8:30 am, et
175K
Wednesday, Aug. 1, 10:00 am, et
60.5
Wednesday, Aug. 1, 2:15 pm, et
No rate changes
Thursday, Aug. 2, 8:30 am, et
Thursday, Aug. 2, 10:00 am, et
Friday, Aug. 3, 8:30 am, et
4%, Payrolls +215K
PCE
The US Department of Commerce’s Bureau of Economic Analysis releases the core PCE price index. The report provides the average increase in costs for personal consumption expenditures. PCE is significant in that the Fed uses it in determining inflation as opposed to the prior use of the consumer price index. The PCE includes the price of spending for and on behalf of households. This includes health care spending paid for a household by a business. The CPI only reflects out of pocket expenses paid directly by consumers.
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