Today's Market Commentary:
RATES IMPROVE ON WEAKNESS IN STOCKS, ECONOMIC DATA

Mortgage interest rates improved this past week as the stock market gave up ground and economic data was generally weaker than expected. The Dow Jones Industrial Average is currently at 9,256, down over 100 points on the week. Economic data of note included July Retail Sales, down 0.1% on expectations that sales would be up 0.7%. Excluding automobile sales, retail sales were down 0.6% on expectations that they would be up 0.1%. Other economic data weaker than expected included June Wholesale Inventories, weekly jobless claims, June Business Inventories, and the University of Michigan Consumer Sentiment Index. Also, Q2 productivity increased more than expected as unit labor costs fell to its lowest level in eight years. July Industrial Production and Capacity Utilization as well as the July Consumer Price Index (CPI) were in line with expectations.

Crude oil futures are currently trading at just over $68 per barrel, down close to $3 per barrel on the week. The Dollar has weakened versus both the Euro and Yen on the week. The Fed left short term interest rates unchanged at its FOMC meeting and the markets absorbed $74 billion in new Treasury debt reasonably well.

Next week look toward Tuesdays Housing Starts and Producer Price Index (PPI), Thursdays weekly jobless claims, and Fridays Existing Home Sales as potential market moving events.