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Oil
Prices Climb
The
Greek bailout package was passed on Monday as expected, and there was
little reaction in US markets. Mixed US economic data also had little
influence. Strong Treasury auctions were the biggest factor for mortgage
rates this week, and rates ended the week a little lower.
Investors
are beginning to focus on the price of oil. Concerns about Iran have pushed
oil prices up to the highest level in nine months. Higher energy prices are
bad for consumers and the economy. Since higher oil prices have two
opposite effects on inflation, though, the impact on mortgage rates is
uncertain. Rising energy costs add to inflation, but they also slow
economic growth, which reduces inflationary pressures. It's not clear which
influence will be larger over time.
The
housing data released this week continued to be encouraging. January
Existing Home Sales rose 4% from December to the highest level since May
2010. The inventory of listed existing homes declined 1% to the lowest
level since March 2005. January New Home Sales again exceeded expectations.
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Also Notable:
- European officials agreed to provide a $172
billion bailout package to Greece
- Weekly Jobless Claims again held close to the
350K level
- Consumer Sentiment rose to the highest level
since February 2011
- The Dow rose above the 13,000 level for the first
time since May 2008
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Average
30 yr fixed rate:
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Last
week:
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+0.05%
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This
week:
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-0.03%
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Stocks
(weekly):
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Dow:
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13,000
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+100
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NASDAQ:
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2,960
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+10
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Week
Ahead
Next
week, Pending Home Sales will be released on Monday. Durable Orders will
come out on Tuesday. Revisions to fourth quarter GDP will be released on
Wednesday, along with Chicago PMI Manufacturing and the Fed's Beige Book.
ISM Manufacturing and Core PCE inflation are scheduled for Thursday.
Personal Income, Consumer Confidence, and Construction Spending will round
out a busy week.
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