Capital Markets Update

Premier Mortgage Group                        July 31, 2015

Mortgage interest rates improved slightly this week as growth is slowing oversees. Economic data in the U.S. was mixed. Data stronger than expected included existing home sales from June that were the highest since February of 2007, oil inventories rising by 2.5 million barrels and jobless claims with a steep decline of 26,000 initial claims. The 4-week average on jobless claims shows a much smaller decline that is little changed from last month, and the PMI manufacturing index was in line with expectations, albeit a soft rate of growth. The one major surprise came in new home sales which dropped by a steep 6.8% while the median price only increased by half of a percent. Latin America and China both showed signs of weakness as companies exporting to these regions posted earnings that did not meet expectations.

The Dow Jones Industrial Average is currently at 17,568, down over 500 points on the week. The crude oil spot price is currently at $48.13 per barrel, down over $2 per barrel on the week. The Dollar weakened versus the Yen and Euro on the week.

Next week look toward Monday’s durable goods orders, Wednesday’s FOMC meeting announcement and Thursday’s GDP and jobless claims.