The major averages failed to hold their early gains despite generally positive data. The Fed holds rates unchanged following the conclusion of its latest Federal Open Market Committee or FOMC meeting as expected. The announcement went on to note that the economy was “strong” as opposed to “solid” in previous FOMC statements. Excluded was mention of the fact that another .25% increase to interest rates would essentially flatline the yield curve.
Mortgage activity continues to slip as per the Mortgage Bankers Association index as it fell 2.6% last week. Refi’s dropped 1.7% while purchase apps declined 3.1%. The 30-year contract rate for a jumbo loan increased fractionally to 4.76%.
Payrolls company ADP reports that 219,000 new private sector jobs were created in July, slightly above consensus. This series has been running a little below the official BLS or Bureau of Labor Statistics report, which is due Friday with expectations of 190,000 new jobs.
Construction spending came in soft during May with a .4% gain on strength in residential construction. Commercial and public construction both fell for the month.
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