Personal Income and Outlays: Personal incomes rose 0.4% in June as rental income went up. Meanwhile, consumer spending was up 0.2% for the month. Inflation in key categories was at 0.1%, while overall prices were up 0.2%. General inflation was up just 0.3% year over year. Consumer spending rose 3.4%. Americans are saving 4.8% of their income.
ISM Manufacturing Index: Manufacturing confidence was down 0.8 points in July to 52.7 overall. Employment growth was down 3 points to 52.7, and new export orders were down 1.5 points to 48.0, the fifth straight contraction. New orders were up 0.5 points to 56.5, the strongest rating of the year. Production was at 56.0. Backlogs were down 4.5 points to 42.5.
MBA Mortgage Applications: Applications were up 4.7% last week as purchases were up 3.0%. Refinance applications rose 6.0%. The average rate for a 30-year fixed loan was down 4 basis points to 4.13% for the week.
International Trade: The U.S. trade deficit rose by $1.9 billion to $43.8 billion in June. Imports were up $1.2 billion, and exports fell by 0.1%. The petroleum gap was up to $7.3 billion from $5.7 billion. The services surplus remains strong at $19.7 billion, unchanged from May. The goods deficit was an area of weakness at $63.5 billion.
Jobless Claims: Initial claims were up 3,000 last week to 270,000. The four-week average was down 6,500, coming in at 268,250. Continuing claims were down 14,000 in the week of July 25 to a level of 2.255 million. The four-week average pulled 18,000 lower to 2.239 million.
Employment Situation: A total of 215,000 jobs were added to nonfarm payrolls in July, coming in as expected. Meanwhile, numbers for the previous two months were revised up by 14,000 jobs. Wages were up 0.2% for the month, and the unemployment rate held steady at 5.3%. Private payrolls added 210,000 jobs, matching expectations. The average workweek lengthened by six minutes to 34.6 hours. There were 60,000 jobs added in trade and transportation. Professional and business services added 40,000 jobs, and retailers added 36,000 jobs. Manufacturing had an unusually strong month, adding 15,000 jobs.
Fixed rates were down again this week.
30-year fixed-rate mortgages (FRMs) averaged 3.91% with an average 0.6 point for the week ending August 6, 2015, down from last week when they averaged 3.98%. A year ago at this time, 30-year FRMs averaged 4.14%.
15-year FRMs this week averaged 3.13% with an average 0.6 point, down from last week when they averaged 3.17%. A year ago at this time, 15-year FRMs averaged 3.27%.
5-year Treasury-indexed hybrid adjustable rate mortgages (ARMs) averaged 2.95% this week with an average 0.4 point, unchanged from last week. A year ago, 5-year ARMs averaged 3.27%.
1-year Treasury-indexed ARMs averaged 2.54% this week with an average 0.3 point, up from last week when they averaged 2.52%. At this time last year, 1-year ARMs averaged 2.98%.
A 6% rise in American Express shares helped make up some of the losses from falling oil prices, but it was still a less than stellar week on the stock market.
The Dow Jones Industrial Average was down 45.97 points Friday to close at 17,373.78. It posted a 1.79% loss for the week. The S&P 500 was down 1.25% for the week after finishing Friday down 5.99 points to 2,077.57. The NASDAQ was down 12.90 points to 5,043.54, a weekly loss of 1.65%.
The Week Ahead
Tuesday, August 11
Quicken Loans HPPI/HVI (10:00 a.m. ET) – Quicken Loans, the second largest retail mortgage lender in the U.S., releases a monthly report on home values as well as the difference between homeowner perception of value and appraiser opinion of value.
Wednesday, August 12
MBA Mortgage Applications (7:00 a.m. ET) – The mortgage applications index measures applications at mortgage lenders. This is a leading indicator for single-family home sales and housing construction.
Thursday, August 13
Jobless Claims (8:30 a.m. ET) – New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time.
Retail Sales (8:30 a.m. ET) – Retail sales measure the total receipts at stores that sell merchandise and related services to final consumers. Sales are measured by retail and food services stores. Data is collected from the Monthly Retail Trade Survey conducted by the U.S. Census Bureau.
Friday, August 14
Producer Price Index (PPI) (8:30 a.m. ET) – The Producer Price Index measures the average change over time in the prices received by domestic producers of goods and services.
Industrial Production (9:15 a.m. ET) – The Federal Reserve’s monthly index of industrial production and the related capacity indexes and capacity utilization rates covers manufacturing, mining, and electric and gas utilities.
Consumer Sentiment (10:00 a.m. ET) – The University of Michigan’s Consumer Survey Center questions 500 households each month on their financial conditions and attitudes about the economy. Consumer sentiment is directly related to the strength of consumer spending.
Visit the Quicken Loans Zing Blog for updated information on important economic releases that affect your wallet.
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