After a brief trip into the red in early trade the major averages enter the final hour about even despite disappointing economic data. The last couple of years has seen the markets and the economy shake off a number of notable events with no ill effects. With materially higher interest rates and a trade war that is about to bite hard, will see if the economy and business cycle can once again demonstrate that it is untouchable.
The Mortgage Bankers Association of America reports that it’s mortgage activity index fell 2.5% last week as refi’s gained 2.2% and purchase apps fell 5.2%. The 30-year jumbo loan rate dipped fractionally to 4.66%. That said this series continues its downward trend compliments of higher interest rates.
Residential construction activity missed expectations substantially in June after housing starts plunged 12.3% to 1.173 million units annualized on broad based weakness. Permits fell for a 3rd consecutive month down 2.2% to 1.273 million units annualized.
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