Weekly Information 8/27

Mortgage interest rates were mostly flat on the week despite generally weaker than expected economic data. Of note, July Existing Home Sales fell 27.2% to its lowest level since June of 1995 on expectations that sales would fall by 13.0%. Year over year, sales were down 25.5% and there is now a 12.5 month supply of existing homes. July New Home Sales were expected to increase by 3.0%. Instead, sales fell by 12.4%. There is now a 9.1 month supply of new homes. July Durable Goods Orders increased by only 0.3% on expectations that orders would increase by 3.0%. Excluding transportation orders, durable goods orders fell by 3.8% on expectations that they would increase by 0.5%. The University of Michigan Consumer Sentiment Index was slightly weaker than expected, reported at 68.9 on expectations of 70.0. On a positive note, weekly jobless claims fell by 31k on expectations that they would only fall by 15k.