Growth Looking a Little Better
· A large and unexpected narrowing of June’s trade deficit, thanks to a pivot away from foreign oil, should provide a sizable revision to Q2 GDP. The ISM Non-Manufacturing Index also posted a larger than anticipated gain, though orders backlogs and export orders worsened in the month.
· Rising interest rates have yet to upend the housing market recovery. Demand for residential mortgages increases as did mortgage applications. Delinquency and foreclosure rates continued to move lower, and relatively loose lending standards persisted for most loan types.