By Jessica Shanahan, Premier Lending LLC adapted from the Shirmeyer Rate Market Report. Mortgage interest rates improved slightly on the week as economic data was mostly weaker than expected.  Economic data weaker than expected included Q2 Productivity, the July Producer Price Index (PPI), July Retail Sales, and the August University of Michigan Consumer Sentiment Index.  The decline in productivity was the third quarterly decline in a row, which is the longest negative streak in the history of the report which dates back to just after World War II.  The Producer Price Index was down 0.4 on expectations that it would increase by 0.1.  Excluding the food and energy components, core PPI was down 0.3 on expectations that it would be up 0.2.  Year over year, PPI was down 0.2 and core PPI was up 0.7.  Retail Sales were expected to be up 0.4 but were unchanged.  Excluding automobile sales, Retail Sales were expected to be up 0.2 but were down 0.3.  In light of these weak reports it’s unlikely the Fed will increase the Fed Funds rate at its September FOMC meeting.  The Dow Jones Industrial Average is currently at 18,601, up about 60 points on the week.  The crude oil spot price is currently at $ 44.35 per barrel, up over $ 2 per barrel on the week.  The Dollar weakened versus the Yen and Euro on the week.  Next week look toward Monday’s Empire State Manufacturing Survey and Housing Market Index, Tuesday’s Consumer Price Index (CPI), Housing Starts, and Industrial Production, Wednesday’s FOMC Minutes from its July meeting, and Thursday’s Jobless Claims, Philadelphia Fed Business Outlook Survey, and Leading Economic Indicators as potential market moving events.   Jessica Shanahan [email protected] Apply online at: 720-833-7964 Office 970-270-2479 Cell 720-438-3993 eFax NMLS License: 1127723 MLO License: 100048262
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