From the Desk

Recent Economic Commentary

Scott Hofer, VP/Director - 7/28/2021

U.S. equities are a mixed bag this morning as investors continue to weigh earnings beats from megacap tech companies, the impact of the Covid-19 delta variant on global growth, and the potential for tighter monetary policy. On the economic data front, the advance trade in goods deficit increased 3.5% in June with exports increasing $0.5 billion and imports increasing $3.5 billion in June, respectively. Wholesale and retail inventories were up 0.8% and 0.3% in June and 10.2% and 3.7% year-over-year, respectively. 

The Mortgage Bankers Association reported that mortgage applications increased 5.7% during the week ending July 23. The increase was due to the Refinance Index increasing 9% and the Purchase Index falling 2%. The 30-year fixed mortgage rate fell to its lowest level since February 2021 and the 15-year fixed rate fell to its lowest level since 1990. 

Lastly, the FOMC meeting concludes today with an announcement from the committee and a press conference from Chairman Powell due this afternoon. 

U.S. Treasury yields are higher this morning, with the 2-year Treasury yield up 0.4 basis point to 0.20%, the 5-year Treasury yield up 4.3 basis points to 0.73% and the 10-year Treasury yield up 2.3 basis points at 1.25%. Advance rates are higher on longer terms.