Rates Increase Slightly as FOMC Statement Dovish Mortgage interest rates increased slightly this past week as the Fed indicated at the conclusion of its FOMC meeting that it would be patient about when it decides to increase rates. Economic data was mixed. Economic data stronger than expected included November Industrial Production, November Capacity Utilization, and weekly jobless claims. Industrial Production increased the most since May of 2010. Economic data weaker than expected included the December New York Empire State Manufacturing Index, the December NAHB Housing Market Index, November Housing Starts, November Building Permits, and the December Philadelphia Fed Business Index. Inflation data continues to be tame. The November Consumer Price Index fell 0.3%, its largest decline since December 2008. Excluding the food and energy components, core CPI was up 0.1%, as expected. In Europe, November consumer prices increased at their slowest rate in five years, continuing to raise deflation concerns. In the United Kingdom, inflation fell to 1.00% in November, a 12 year low. The Dow Jones Industrial Average is currently at 17,800, up over 500 points on the week. The crude oil spot price is currently $55.64 per barrel, down over $2 per barrel on the week. The Dollar strengthened versus the Euro and Yen on the week. Next week look toward Monday’s Existing Home Sales, Tuesday’s Durable Goods Orders, the final look at Q3 GDP, Personal Income and Outlays, the Consumer Sentiment Index, and New Home Sales, and Wednesday’s Jobless Claims as potential market moving events. All markets are closed Thursday for Christmas. Pyper Lund Mortgage Consultant Cherry Creek Mortgage Company Direct: 303-249-0369 Email: plund@ccmclending EFAX: 303-954-4716 NMLS: 389794 pyperlund
Posted on: Fri, 19 Dec 2014 21:27:05 +0000