Capital Market Updates

Premier Mortgage Group                          July 17, 2015

Mortgage interest rates improved slightly this past week as Greece approved the austerity measures required by the EU to release additional bailout funds. There are still concerns though that Greece will not be able to service its debt without restructuring the debt. Economic data in the U.S. was mixed. Economic data stronger than expected included May Business Inventories, the July Empire State Manufacturing Index, June Industrial Production, June Capacity Utilization, the NAHB Housing Market Index, June Housing Starts, and June Building Permits. The Housing Market Index reached its highest level since November of 2005. Economic data weaker than expected included June Retail Sales, June Export and Import Prices, the July Philadelphia Fed Business Index, and the July University of Michigan Consumer Sentiment Index. Regarding inflation, the June Producer Price Index (PPI) increased slightly more than expected and the June Consumer Price Index (CPI) was in line with expectations. Fed Chair Yellen indicated in testimony to Congress that she still expects a rate increase this year but that it will be data dependent.

The Dow Jones Industrial Average is currently at 18,040, up almost 300 points on the week. The crude oil spot price is currently at $50.22 per barrel, down over $2 per barrel on the week. The Dollar strengthened versus the Yen and Euro on the week.

Next week look toward Wednesday’s Existing Home Sales and FHFA House Price Index, Thursday’s Jobless Claims, and Friday’s New Home Sales as potential market moving events.