The latest Trade Balance data has shown that despite the rigorous action involved with tariffs, it has had little impact on adjusting the trade balance amongst the US and other countries. The imbalance has gone the other direction — becoming worse — the last 3 releases alone. 

The unemployment data has shown to be surprisingly resilient as people are not gaining nor losing jobs on the average. Amidst the current economic events and administrative events, there has been some job scarcity in many markets but the impact has not been shown in the data. 

Hourly wages has also again consistently lagged behind inflation, and this release has shown that trend to remain. The next week there is scheduled inflation data from the CPI and PPI reports set to release, but they have been often delayed with the current affairs.

U.S. Trade Deficit
U.S. Trade Deficit Widens Less Than Expected To $57.3 Billion In February: A report released by the Commerce Department on Thursday showed the U.S. trade deficit increased by less than expected in the month of February. The Commerce Department said the trade deficit widened to $57.3 billion in February from a revised $54.7 billion in January.

Unemployment
The number of people who applied for unemployment benefits in late April sank to a 57-year low, underscoring the remarkably low level of layoffs in the U.S. economy amid heavy turbulence. So-called initial jobless claims sank by 26,000 to 189,000 in the seven days ended April 25, the government said Thursday. That’s the lowest level since 1969, when the population and the economy were much smaller.

The U.S. jobs market has shown surprising strength in the past few years, even as hiring nosedived in response to higher tariffs, a decline in immigration and general economic uncertainty.

Primary Mortgage Market Survey Index

• 15-Year FRM rates saw an increase of 0.06%, with the current rate at 5.64%
• 30-Year FRM rates saw an increase of 0.07%, with the current rate at 6.30%

MND Rate Index

• 30-Year FHA rates saw an increase of 0.01% for this week. Current rates at 5.92%
• 30-Year VA rates saw an increase of 0.01% for this week. Current rates at 5.94%

Jobless Claims
Initial Claims were reported to be 205,000 compared to the expected claims of 189,000.

What’s Ahead
Inflation data from the CPI and PPI is scheduled for next week, though ongoing delays may push back the releases.

A relatively light week given recent events, with the only notable releases being Consumer Sentiment and Retail Sales. Consumer Sentiment has broken its recent downtrend, ticking up slightly. However, in the face of rising gas prices and increasing costs of living, this may shift in the next release. Retail Sales have also shown a positive uptick, indicating that the economy remains resilient despite ongoing global events.

Consumer Sentiment
US consumer sentiment showed some improvement amid a two-week ceasefire between the US and Iran, but it’s still at record lows, according to new data from the University of Michigan. The Index of Consumer Sentiment showed consumer sentiment ended April with a final reading of 49.8, above the 48.5 reading economists expected but marking the lowest level on record — below readings taken during the financial crisis, the COVID-19 pandemic, and when inflation spiked following Russia’s invasion of Ukraine.

Retail Sales
U.S. retail sales increased more than expected in March as the war with Iran boosted gasoline prices and led to a record surge in receipts at service stations, while tax refunds underpinned spending elsewhere.

Primary Mortgage Market Survey Index

• 15-Year FRM rates saw a decrease of -0.07%, with the current rate at 5.58%
• 30-Year FRM rates saw a decrease of -0.07%, with the current rate at 6.23%

MND Rate Index

• 30-Year FHA rates saw an increase of 0.03% for this week. Current rates at 5.91%
• 30-Year VA rates saw an increase of 0.04% for this week. Current rates at 5.93%

Jobless Claims
Initial Claims were reported to be 214,000 compared to the expected claims of 210,000. The prior week landed at 208,000.

What’s Ahead
Employment data, Trade Deficit, and Consumer Credit should be strong releases for this upcoming week.