Registered Investment Adviser Caleb Lawrence
The major averages enter the final hour with modest gains on generally positive news seemingly unconcerned about the latest round of saber rattling and missile launches involving North Korea. Mortgage applications fell 2.3% last week as per the Mortgage Bankers Association who reported a 2.7% decline in purchase applications and a 2% drop in refi’s. The 30-year contract rate for a jumbo loan increased fractionally to 4%.
2nd Quarter Gross Domestic Product or GDP was revised up to 3% beating expectations on the best showing in 9-quarters pushing the 2017 average to 2.1% in the process. Strength was seen in personal consumption, fixed investment, and trade. Disposable income grew by 3.2% building on the 1st quarters 2.9% growth. The inflation measuring implicit price deflator fell by more than half from 2% to just .96% as inflation evaporated hitting a 5-quarter low in the process. This report made for good headlines but again the economy struggles to maintain 2% annual growth.
Agricultural Prices slipped .1% in June on weakness in vegetables, oil bearing crops and meat prices. Large gains were seen in fruits and dairy products during the month.