Daily Market Update 1/30/09

Mortgage rates were steady to slightly lower Wednesday in light trading. In economic news, the Chicago Purchasing Managers Index, a measure of manufacturing activity, jumped to 60, well above the consensus forecast of 55. A reading above 50 indicates expansion in the manufacturing sector. The mortgage-backed securities (MBS) market will close early tomorrow in observance of the New Year's holiday. Next week may be volatile, with several key reports due to be released, beginning with the ISM manufacturing index on Monday, minutes from the December FOMC meeting of the Fed on Wednesday, and the Employment Report for December on Friday. No other data will be released today.

Daily Market Update 12/29/09

Rates held steady Tuesday ahead of this afternoon's 5-year Treasury auction. Consumer Confidence rose to 52.9 in December, from 50.6 last month, in line with expectations. The S&P/Case-Shiller Home Price Index, covering 20 major metropolitan areas, was unchanged in October following 4 consecutive monthly increases. Stocks moved modestly higher. No other economic data will be released today.

Daily Market Update

Rates moved higher Monday, driven by concerns over growing government debt and higher oil prices. The 30-year fixed Fannie Mae required net yield is now at the highest level since August 24. No economic data will be released today. although there will be a Treasury auction of 2-year notes this afternoon at 1:00 PM et.

Daily Market Update 12/23/09

Mortgage rates were little changed Wednesday following the release of weaker than expected economic data. Personal Income and Consumer Sentiment both rose in November, but fell short of forecast. New Home Sales declined sharply to 355,000 units, well below expectations, to a 7 month low. The Mortgage Bankers Association weekly purchase activity index fell 12%, while the refinancing activity index decreased by 10%. The Treasury will auction a record-tying $118 billion of 2-, 5-, and 7-year notes next week. No other data will be released today.

Daily Market Update 12/22/09

Mortgage rates rose again Tuesday, having now increased by about 3/8% since Friday. Following last week's Fed meeting, investors have given up hope that the Fed will extend its mortgage-backed securities (MBS) purchase program, causing MBS yields to rise. In economic news, third quarter GDP was revised down to 2.2%, far below the consensus forecast of 2.7%. Existing Home Sales increased 7.4% in November to the highest level since February 2007 as first-time homebuyers rushed to take advantage of the $8,000 tax credit that had been due to expire November 30. It has since been extended to include homes under contract by 4/30/2010 and closed by 6/30/2010. Stocks moved higher. No other data will be released today.

Daily Market Update 12/21/09

Rates moved higher Monday as a rally in the stock market has hurt mortgage-backed securities and Treasuries. Investors are also expressing concerns over swelling levels of government debt. The supply of marketable Treasury debt has risen by $1.37 trillion this year, a 24% increase. No economic data will be released today.

Daily Market Update 12/18/09

Rates were little changed Friday, having moved slightly lower for the week. No economic data will be released today. Next week's schedule includes final third quarter GDP figures and Existing Home Sales on Tuesday, Core PCE (the Fed's preferred measure of inflation) and Consumer Sentiment on Wednesday, and Durable Goods Orders Thursday. Sudden price movements can take place during the second half of December due to extremely light trading. The market will close early Thursday for the Christmas Holiday.

Daily Market Update 12/17/09

Rates moved lower Thursday as Weekly Jobless Claims rose unexpectedly and the dollar strengthened against most major currencies. Stocks declined. The Index of Leading Indicators rose 0.9%, beating the consensus forecast of +0.7%. No other economic data will be released today.

Daily Market Update 12/16/09

Mortgage rates were little changed Wednesday. The November Consumer Price Index (CPI) rose a tame 1.7% from one year ago, a bit lower than expected. Housing Starts increased 9% to 574,000, close to forecast. The Fed made no rate change, as expected, and gave no indication that rates will be increased any time soon.

Daily Market Update 12/15/09

Mortgage rates moved higher Tuesday following the release of the Producer Price Index (PPI) inflation data. The PPI rose 1.8% in November, doubling the consensus forecast of 0.9%. Core PPI, which excludes food and energy components, rose 0.5%, the largest increase since October 2008. Separately, Industrial Production increased 0.8%, above the consensus of 0.5%. Mortgage-backed securities markets are typically volatile in December due to light trading, so any movement tends to be exaggerated. Tomorrow, the Consumer Price Index will be released at 8:30 AM, and the Fed wraps up its two-day FOMC meeting at 2:15 PM. No other data will be released today.

Daily Market Update

Rates were little changed Monday, as no economic data will be released today. The big story this week will be the Fed meeting on Wednesday. No change in rates is expected, but investors will be closely watching for clues about the timing of future rate hikes.

Daily Market Update 12/11/09

Rates inched higher Friday following the release of better than expected economic data. December Retail Sales rose 1.3%, well above the consensus forecast of +0.6%. Consumer Sentiment rose to 73.4 from 67.4 last month. A reading of 68.5 had been expected. Yesterday the House passed a huge spending bill that projects a record $1.5 trillion deficit next year, adding to investors' concerns over government debt supply. Mortgage-backed securities may be volatile next week. The Producer Price Index (PPI) and Industrial Production will be released Tuesday. The Consumer Price Index (CPI) will come out Wednesday. The Fed will also hold its last FOMC meeting of the year on Wednesday. No other economic data will be released today.

Daily Market Update 12/10/09

Interest rates faced upward pressure Thursday ahead of this afternoon's $13 billion auction of 30-year Treasury bonds. Investors' concerns about massive budget deficits are weighing heavily on Treasury and mortgage-backed securities markets. Weekly Jobless Claims rose to 474,000, above the consensus forecast of 465,000. The October Trade Deficit was lower than expected. Retail Sales figures for November will be released tomorrow at 8:30 AM.

Daily Market Update 12/9/09

Mortgage rates held steady Wednesday as mortgage-backed securities markets drifted ahead of today's 10-year Treasury auction. No economic data will be released today. Treasury Secretary Tim Geithner extended the controversial $700 billion TARP fund until October 3, 2010. The TARP's authorization had been due to expire at the end of 2009. The Mortgage Bankers Association weekly purchase activity index rose by 4%, while the refinancing activity index increased by 11%. Average reported 30-year fixed rates for the prior week rose to 4.88% (with 0.7 points) from 4.79%.

Daily Market Update 12/8/09

Mortgage rates were little changed Tuesday. Yesterday's comments from Fed Chairman Ben Bernanke helped mortgage-backed securities markets. Bernanke suggested that inflation is likely to remain low, easing concerns by some investors that the Fed might begin raising rates early next year. Stocks and oil prices moved lower, the dollar higher. No economic data will be released today.

Daily Market Update 12/7/09

Rates inched lower Monday as mortgage-backed securities partially recovered from Friday's losses, driven by a stronger than expected Employment Report. The dollar rose against the euro on speculation November's dip in the Unemployment Rate would enable the Fed to begin raising rates sooner than anticipated, perhaps as early as the first quarter of 2010. Investors will be closely watching Fed Chairman Bernanke's speech this afternoon before the Economic Club of Washington for any clues as to the timing of future rate increases. No economic data will be released today.

Daily Market Update 12/4/09

Rates moved higher Friday following a much stronger than expected Employment Report. The economy lost 11,000 jobs in November, far less than the consensus forecast of -125,000, and the smallest monthly loss in two years. The Unemployment Rate dipped to 10% from 10.2% in October. Average Hourly Earnings, a proxy for wage growth, rose slightly. Stocks rallied on the report. Next week will be light in terms of new economic data with the exception of Friday's report on November Retail Sales. No other data will be released today.

Daily Market Update 12/3/09

Mortgage rates were steady to slightly higher Thursday as weekly Jobless Claims fell to 457,000, below the consensus forecast of 480,000, and to the lowest level in 15 months. Third quarter Productivity was revised lower to 8.1% from 9.5%. The Institute for Supply Management services index fell unexpectedly to 48.7, indicating contraction in the services sector of the economy. Stocks were mixed. Tomorrow, the closely-watched Employment Report for November will be released at 8:30 AM et.

Daily Market Update 12/2/09

Rates inched higher Wednesday, reflecting a brief sell off in mortgage-backed securities late Tuesday. Yesterday, Philadelphia Federal Reserve President Charles Plosser indicated the Fed might need to begin raising interest rates while unemployment remains high. In economic news, the ADP forecast for Friday's Employment data came in close to expectations. The Mortgage Bankers Association weekly purchase activity index rose by 4%. Average reported 30-year fixed rates fell last week to 4.79% with 0.7 points, the lowest level since May 15. The Fed's Beige Book, a survey of economic conditions by the Federal Reserve's 12 regional banks, will be released at 2:00 PM.

Daily Market Update 12/1/09

Mortgage rates remained mostly unchanged Tuesday following the release of mixed economic news. Pending Home Sales rose 3.7% in October as first-time buyers rushed to take advantage of the $8,000 tax credit. A decrease of -1.0% was expected. The Institute for Supply Management manufacturing index fell a bit more than forecast to 53.6 last month from 55.7. A reading above 50 indicates expansion in the manufacturing sector of the economy. No other data will be released today.

Daily Market Update 11/30/09

Mortgage rates held steady Monday, matching their lowest levels of the year. This morning, the Chicago Purchasing Managers Index rose to 56.1, above forecast, to the highest level since August 2008. A reading above 50 indicates expansion in manufacturing. Stocks moved modestly higher. Investors will be closely watching this Friday's Employment Report for November. No other economic data will be released today.

Daily Market Update 11/25/09

Mortgage rates were unchanged Wednesday as investors shrugged off stronger than expected economic data. Weekly Jobless Claims fell to 466,000, well below the consensus forecast of 500,000, and the lowest level since September 2008. October Personal Income matched expectations with a 0.2% increase. New Home Sales rose to an annual rate of 430,000, well above forecast. Durable Goods Orders was the weakest report, falling -0.6%. The Treasury will auction 7-year notes at 1:00 PM. The mortgage-backed securities market will close early today at 2:00 PM et, and will reopen Friday.

Daily Market Update 11/24/09

Rates inched lower Tuesday following a downward revision of third quarter GDP. The economy grew at a 2.8% rate last quarter, down from earlier estimates of 3.5%. Stronger than average demand for this afternoon's 5-year Treasury auction helped lift mortgage-backed securities markets. Minutes from the November 4th Fed meeting revealed upwardly revised forecasts for economic growth, but a widely held view that unemployment will remain high for several years. Tomorrow, five economic reports will be released ahead of the Thanksgiving holiday.

Daily Market Update 11/23/09

Mortgage rates were little changed Monday as stock prices surged on positive housing data. Existing Homes Sales rose 10.1% in October to the highest level since February 2007, easily beating forecast, as buyers rushed to take advantage of the $8,000 first-time homebuyer tax credit. The national median home price fell 7.1% from October 2008. Revised third quarter GDP figures and minutes from last month's Fed meeting will be released tomorrow. Durable Goods Orders will come out Wednesday. No other data will be released today.

Daily Market Update 11/19/09

Rates remained unchanged Thursday. In economic news, weekly Jobless Claims came in at 505,000, close to expectations, while Continuing Jobless Claims fell to the lowest level since mid-March. The trend indicates slow improvement in the labor market. Leading Indicators rose 0.3%, a bit below forecast. Stocks fell sharply. No other economic data will be released today.

Daily Market Update 11/18/09

Mortgage rates were little changed Wednesday. The Consumer Price Index (CPI) for October came in a bit higher than expected, having increased 0.3% from September. The more closely watched "core" CPI, which excludes food and energy components, rose 0.2% and was a tame 1.7% higher than one year ago. The data continued to show that inflation is not a major concern in the near-term. October Housing Starts dropped 11% to 529,000, far below the consensus forecast of 600,000. Building Permits, a leading indicator, declined 4%. The Mortgage Bankers Association weekly purchase activity index fell by 8% to the lowest level in 12 years. No other economic data will be released today.

Daily Market Update 11/17/09

Mortgage rates held steady Tuesday as average 30-year fixed rates remained below 5%. This morning, the October Producer Price Index rose 0.3%, less than expected, and was down -1.9% from one year ago. Industrial Production rose 0.1%, well below forecast. The Consumer Price Index will be released tomorrow.

Daily Market Update 11/12/09

Mortgage rates held steady Thursday as weekly Jobless Claims came in close to expectations. Today's Treasury auction of 30-year bonds drew weak demand, but mortgage-backed securities markets showed little reaction. The Mortgage Bankers Association weekly purchase activity index fell by 12%, to the lowest level since December 2000. No major economic data will be released until next week, beginning Monday with October Retail Sales, followed by the Producer Price Index (PPI) and Industrial Production Tuesday, and the Consumer Price Index (CPI) Wednesday.

Daily Market Update 11/10/09

Mortgage rates continued moving lower Tuesday. The Treasury will auction $25 billion of 10-year notes this afternoon at 1:00 PM et. Median US home prices fell 11.2% in the third quarter from one year earlier according to the National Association of Realtors. The median price in the Louisville Metropolitan Area rose 0.1% over the same period. No economic data will be released today. The market will be closed tomorrow.

Daily Market Update 11/9/09

Rates were little changed Monday, as no major economic data will be released this week. Treasury auctions of 3- and 10-year notes and 30-year bonds taking place Monday, Tuesday, and Thursday, respectively, will likely have the greatest impact on mortgage-backed securities. Average 30-year fixed rates have again slipped below 5%. Last Friday the $8,000 first-time homebuyer tax credit was extended to include homes under contract by 4/30/10 and closed by 6/30/10. The program was expanded to include a maximum $6,500 credit to non-first-time buyers who have been in their current homes for at least 5 years. Financial markets will be closed Wednesday in observance of Veteran's Day.

Daily Market Update 11/6/09

Rates moved lower Friday following weaker than expected jobs data. The Unemployment Rate rose to 10.2% in October from 9.8% in September, the highest level since April 1983. The economy lost 190,000 jobs last month, and revisions to prior months added another 90,000 to the previously announced figures. On a positive note, average hourly earnings, a proxy for wage growth, rose a bit more than forecast. No other data will be released today.

Daily Market Update 11/5/09

Mortgage rates held steady Thursday as third quarter Productivity increased 9.5%, far above the consensus forecast. The data confirmed that businesses are getting more work out of existing employees, easing labor unit costs. Weekly Jobless Claims fell to 512,000, below expectations, and to the lowest level since January 3. The Senate passed a bill extending the $8,000 first-time homebuyer tax credit, making it applicable to contracts entered into by April 30, 2010, and closed by June 30, 2010. The bill includes a new $6,500 tax credit to homebuyers who have owned their current homes for at least 5 years, subject to income limits. The bill now moves to the House, where quick passage is expected. The Nonfarm Payrolls report for October will be released tomorrow at 8:30 AM.

Daily Market Update 11/4/09

Rates inched higher Wednesday ahead of this afternoon's Fed announcement. The Federal Open Market Committee (FOMC) of the Federal Reserve will release a statement at 2:15 PM, and while no rate change is expected, investors will be looking for some indication about when the Fed will begin tightening monetary policy. In economic news, the Institute for Supply Management services index fell unexpectedly in October. No other data will be released today.

Daily Market Update 11/3/09

Mortgage rates held steady Tuesday. In economic news, Factory Orders rose 0.9% last month, slightly above forecast. Investors have now turned their focus to tomorrow's FOMC meeting and Friday's Nonfarm Payrolls report. The mortgage-backed securities market is likely to remain volatile for rest of the week. No other economic data will be released today.

Daily Market Update 11/02/09

Mortgage rates were little changed Monday in spite of the release of stronger than expected economic data. The Institute for Supply Management manufacturing index rose to 55.7 last month from 52.6 in September. A reading above 50.0 indicates expansion. Pending Home Sales rose for the eighth straight month in October as buyers rushed to take advantage of the $8,000 first time homebuyer tax credit due to expire November 30. An extension of the credit by Congress appears likely, but has not yet been finalized. The Fed begins a two day FOMC meeting tomorrow, and while no rate change is expected, investors will be looking for clues as to when and how the Fed may begin unwinding the stimulus they've pumped into the economy. With unemployment at 9.8% and inflation under control in the near term, Fed officials may not be inclined to rush the process.

Daily Market Update 10/30/09

Mortgage rates dipped Friday following weaker than expected economic news. Consumer Spending fell in September for the first time in 5 months and Consumer Sentiment dropped below forecast. Personal Income was flat, as expected. The September Core PCE price index, the Fed's preferred measure of inflation, rose 0.1% from August and increased at a tame 1.3% annual rate, providing further evidence that inflation is not a concern in the short term. Stocks moved lower. Next week is likely to remain volatile for mortgage-backed securities, with the release of key economic data Monday and Friday, and the Fed's FOMC meeting Wednesday. The Institute for Supply Management Index, measuring manufacturing activity, will be announced Monday, and the Nonfarm Payrolls report, which includes the Unemployment Rate for October, will come out Friday.

Daily Market Update 10/29/09

Mortgage rates were little changed Thursday as mortgage-backed securities (MBS) outperformed Treasuries. In economic news, preliminary third quarter Gross Domestic Product (GDP) figures showed the economy grew at an annual rate of 3.5% in July through September, beating the consensus forecast of +3.2%. Weekly Jobless Claims came in at 530,000, a bit higher than expected. Stocks rallied. The Treasury wraps up its 3-day auction this afternoon at 1:00 PM with the sale of 7-year notes. No other data will be released today.

Daily Market Update 10/28/09

Rates inched lower Wednesday as New Home Sales unexpectedly fell by 3.6% last month. September Durable Goods Orders rose 1.0%, matching forecast. The Mortgage Bankers Association reported the weekly purchase activity index fell by 5%, while the refinancing activity index declined by 16%. The Senate moved closer to passing a modified extension of the first time homebuyer tax credit. Preliminary third quarter GDP figures will be released tomorrow at 8:30 AM.

Daily Market Update 10/26/09

Rates faced upward pressure Monday ahead of a record Treasury auction and spate of key economic reports due out later this week. Mortgage-backed securities markets may remain volatile for the next several days. No economic data will be released today.

Daily Market Update 10/23/09

Mortgage rates faced upward pressure Friday as Existing Home Sales rose 9.4% last month according the the National Association of Realtors. Much of the increase was credited to a rush of first time homebuyers taking advantage of the $8,000 tax credit due to expire November 30. The inventory of unsold homes fell to 7.8 months, the lowest level since March 2007. Mortgage-backed securities markets may be volatile next week, with a slew of key economic data scheduled for release. Durable Goods Orders will come out Tuesday, New Home Sales Wednesday, third quarter GDP Thursday, and the Chicago Purchasing Managers Index Friday. In addition, the Treasury will hold a 3 day auction of $116 billion in 2-, 5-, and 7-year notes beginning Tuesday. No other economic data will be released today.

Daily Market Update 10/22/09

Mortgage rates were little changed Thursday. Weekly Jobless Claims rose to 531,000, above forecast. Continuing Jobless Claims fell, but this was partly due to the expiration of benefits rather than new hiring. Leading Indicators rose 1.0%, close to expectations. The Treasury will announce the size of upcoming auctions at 11:00 AM.

Daily Market Update 10/21/09

Rates rose Wednesday as comments from central bankers around the world about future policy tightening moves hurt mortgage-backed securities markets. Oil prices surged above $80 per barrel, the dollar weakened against the Euro. The Fed's Beige Book, a survey of economic activity by Fed regional banks, will be released at 2:00 PM.

Daily Market Update 10/20/09

Rates inched lower following today's weak economic data. The September Producer Price Index (PPI) fell 0.6%, far below forecast. The more closely watched "core" PPI declined 0.1%, also lower than expected. Housing Starts increased slightly, but fell short of expectations. Building Permits, a leading indicator, dropped 1%. Stocks moved lower. No other data will be released today.

Daily Market Update 10/19/09

Rates held steady Monday in light trading. Fed Chairman Ben Bernanke will be speaking at 11:00 AM. No economic data will be released today.

Daily Market Update 10/16/09

Mortgage rates were little changed Friday on mixed economic news. Industrial Production rose 0.7% last month, beating the consensus forecast of +0.1%, but Consumer Sentiment fell unexpectedly to a reading of 69.4 from 73.5. Stocks moved sharply lower. The most significant economic report due out next week will be Tuesday's release of the Producer Price Index for September. No other data will be released today.

Daily Market Update 10/15/09

Rates moved higher Thursday following the release of stronger than expected economic data. Weekly Jobless Claims fell to 514,000, the lowest level since January. The Empire State regional manufacturing index jumped to 34.6, far above the consensus forecast of 17.0, and the highest level since May 2004. The September Consumer Price Index (CPI) rose 0.2%, matching estimates. The CPI was 1.3% lower than one year ago. Mortgage-backed securities prices later improved following the Philadelphia Fed manufacturing index, which dropped more than expected. Favorable repricing may occur.

Daily Market Update 10/14/09

Rates inched higher following stronger than expected Retail Sales data. September Retail Sales fell 1.5%, beating the consensus forecast of negative 2.0%. Stocks initially rallied, but have since turned lower, helping mortgage-backed securities (MBS) markets. Further improvement may result in favorable repricing of mortgage rates. The Fed will release minutes from last month's FOMC meeting this afternoon at 2:00 PM.

Daily Market Update 10/13/09

Rates dipped Tuesday on the latest comments from Fed officials suggesting that rate hikes are still a long way off. Federal Reserve Bank of St. Louis President James Bullard stated that the unemployment rate needs to decline before the Fed begins raising rates. No economic data will be released today.

Daily Market Update 10/12/09

I have returned after a much needed week-long vacation to a mortgage-backed securities (MBS) market that is closed in observance of Columbus Day. Mortgage rates finished last week slightly higher following weak demand for Thursday's 30-year Treasury auction and mixed signals from Fed officials regarding the timing of future rate increases. MBS markets were also hurt by solid gains in stock prices. The most significant economic data this week will be Wednesday's report on September Retail Sales and Thursday's Consumer Price Index (CPI). Retail Sales account for about 70% of economic activity and the CPI is the most closely watched monthly inflation report. Minutes from the last FOMC meeting will come out on Wednesday.

Daily Market Update 10/2/09

Rates inched lower Friday following September's Nonfarm Payrolls Report. The economy lost 263,000 jobs last month, well above consensus forecast. The Unemployment Rate matched expectations at 9.8%, the highest level since June 1983. The Fannie Mae 30-year fixed rate is now at its lowest level since May 21. Next week will be relatively quiet in terms of economic data. Investors will likely turn their focus to the Treasury auctions of 10-year notes on Wednesday and 30-year bonds on Thursday. No other data will be released today.

Daily Market Update 10/1/09

Mortgage rates eased Thursday, driven by a sharp sell off in stocks. Economic news was mixed. Weekly Jobless Claims rose to 551,000, above forecast. The Institute for Supply Management (ISM) manufacturing index reading of 52.6 indicated slight growth in manufacturing, but fell short of expectations. Pending Home Sales rose a strong 6.4%, the seventh consecutive monthly increase. Analysts attribute part of the increase to delayed closings and extended loan processing times resulting from a large number of short sales and cumbersome new appraisal regulations. The Treasury will announce the size of upcoming auctions today at 11:00 AM. Investors will be closely watching tomorrow's Nonfarm Payrolls report for September.

Daily Market Update 9/30/09

Rates were little changed Wednesday as second quarter GDP was revised higher to -0.7%, above the consensus forecast of -1.2%, but the Chicago PMI national manufacturing index fell to 46.1, which was far below the expected reading of 52.0. A reading below 50 indicates contraction in the manufacturing sector. Stocks moved sharply lower. No other economic data will be released today.

Daily Market Update 9/29/09

Mortgage rates held steady Tuesday on mixed economic news. The S&P/Case-Shiller home price index rose for the third straight month in July, while the year-over-year decline was less than expected. The Conference Board reported Consumer Confidence fell last month as job losses mounted. A small increase had been forecast. The remainder of the week may be volatile for mortgage-backed securities markets. The Chicago Purchasing Manager's Index will be released Wednesday, the Institute for Supply Management manufacturing index Thursday, and September's Non-farm Payrolls report Friday. No other economic data will be released today.

Daily Market Update 9/25/09

Mortgage rates inched lower Friday following the release of weaker than expected economic data. August Durable Goods Orders fell 2.4%, well below the consensus forecast of +0.5%. July New Home Sales rose 0.7% to 429,000, but fell short of expectations. The 30-year fixed rate is now at its lowest level since May. Federal Reserve Board of Governors member Kevin Warsh suggested in a Wall Street Journal Op Ed piece that the Fed may need to begin raising interest rates while unemployment is still elevated in order to avoid runaway inflation. Several key economic reports are due out next week, the most significant being Friday's Non-farm Payrolls report for September.

Daily Market Update 9/24/09

Mortgage rates eased Thursday following yesterday's FOMC meeting. The Fed announced plans to gradually reduce weekly purchases of mortgage-backed securities (MBS) from Fannie Mae and Freddie Mac, but extend the phase-out of the program by three months, until March 2010. MBS markets reacted favorably to the announcement. In economic news, weekly Jobless Claims fell to 530,000, less than forecast. Existing Home Sales declined 2.7% in August. A small increase had been expected. Stocks and oil prices moved lower. Durable Goods Orders for August will be released tomorrow.

Daily Market Update 9/23/09

Rates have seen little movement ahead of this afternoon's Fed announcement. No change in rates is expected, but the Fed may may release important details on the timing of future rate hikes and the status of the mortgage-backed securities (MBS) purchase program. The FOMC statement may have a large impact on MBS prices. There will be a 5-year Treasury auction at 1:00 PM. No economic data will be released today.

Daily Market Update 9/22/09

Rates inched higher Tuesday as this week's two day FOMC meeting got underway. The Fed will issue its policy statement tomorrow at 2:15 PM. In economic news, US Home Prices rose 0.3% in July according to the Federal Housing Finance Agency, a bit less than expected. The $8,000 first-time home buyer tax credit helped boost sales. Stocks moved modestly higher.

Daily Market Update 9/21/09

Mortgage rates were mostly unchanged Monday ahead of this week's FOMC meeting. The Fed will begin their two day meeting tomorrow. While no rate change is expected, investors disagree on how and when the Fed will wrap up its purchases of mortgage-backed securities from Fannie Mae and Freddie Mac. Their decision could have a large impact on mortgage rates. In economic news, Leading Indicators rose for the fifth straight month, but came in slightly below expectations. No other data will be released today.

Daily Market Update 9/18/09

Rates held steady Friday, as no economic data will be released today. This morning, the Federal Housing Administration (FHA) announced that its reserves have fallen below required levels. To reduce risk, the FHA is planning policy changes, such as requiring higher credit scores for borrowers. No time frame for the proposed changes has been given. Next week may be volatile for mortgage-backed securities (MBS) markets. Traders will be closely watching Wednesday's FOMC meeting for details of how and when the Fed plans to unwind its purchases of Treasuries and MBS's. The Fed has purchased nearly $1 trillion of MBS's from Fannie Mae and Freddie Mac this year in an effort to push mortgage rates lower.

Daily Market Update 9/17/09

Mortgage rates were little changed Thursday as Housing Starts rose at a 2% annual rate, close to forecast. Building Permits, a leading indicator, rose 3% to 579,000 units, the highest level since November. Weekly Jobless Claims came in close to expectations. No other economic data will be released today. Investors are turning their focus to next week's FOMC meeting of the Federal Reserve.

Daily Market Update 9/16/09

Rates improved slightly Wednesday as retail inflation data came in close to expectations. The August Consumer Price Index (CPI) rose 0.4% from July and fell 1.5% from one year ago. The closely watched "core" rate rose at a tame 1.4% annual rate. Separately, Industrial Production rose 0.8% from July. Mortgage-backed securities markets initially rose, but fell back after a Treasury report showed a substantial decline in foreign holdings of US securities. The Mortgage Bankers Association weekly purchase activity index fell by 10%, while the refinancing activity index decreased by 7%. No other data will be released today.

Daily Market Update 9/15/09

Mortgage rates moved higher Tuesday as stronger than expected economic data hurt mortgage-backed securities markets. The August Producer Price Index rose 1.7% from July, while the more closely watched "core" rate, which excludes food and energy components, rose 0.2%, doubling forecast. Retail Sales increased 2.7% in August, boosted by the Cash for Clunkers program. Analysts will be watching to see if the strength in retail sales continues in months ahead. The Empire State Index, which measures New York manufacturing activity, rose to 18.9, above the consensus of 15.0. The Consumer Price Index and Industrial Production will be released tomorrow.

Daily Market Update 9/14/09

Rates inched higher Monday ahead of key inflation data due out later this week. The Producer Price Index and Consumer Price Index will be released over the next two days. Global investors grew nervous over the prospect of an impending trade war after the Obama Administration announced tariffs on tires imported from China last Friday. China responded over the weekend, saying they will consider imposing tariffs on automotive products and chickens from the US. Stocks moved modestly lower. No economic data will be released today.

Daily Market Update 9/11/09

Mortgage rates inched lower Friday. The 30-year fixed Fannie Mae required net yield reached its lowest level since May 27. Consumer Sentiment rose more than forecast in August as job losses slowed. Several key economic reports are due out next week, including the Producer Price Index and Retail Sales on Tuesday, and the Consumer Price Index and Industrial Production Wednesday. No other economic data will be released today.

Daily Market Update 9/10/09

Rates moved lower Thursday as global bond markets improved when the Bank of England (BOE) did not increase its stimulus programs. As expected, the BOE held rates unchanged. Weekly Jobless Claims fell a bit more than expected to 550,000. The July Trade Deficit rose sharply, driven by new car sales under the Cash for Clunkers program. Freddie Mac reported average 30-year fixed mortgage rates for the past week of 5.07% with .7 points, down slightly from the previous week. The Treasury will wrap up its 3 day auction with the sale of 30-year bonds this afternoon at 1:00 PM. No more economic data will be released today.

Daily Market Update 9/9/09

Mortgage rates remained mostly unchanged Wednesday ahead of this afternoon's Treasury auction of 10-year notes. This morning, the US dollar dropped to its lowest level of the year. Stocks moved modestly higher. The Federal Reserve will release its Beige Book, a survey of economic activity by the Fed's 12 regional banks, at 2:00 PM. The Mortgage Bankers Association weekly purchase activity index rose by 10%, while the refinancing activity index increased by 23%, as 30-year fixed rates approached 5% last week. No economic data will be released today.

Daily Market Update 9/8/09

Rates inched higher Tuesday ahead of this week's large Treasury auctions of 3- and 10-year notes and 30-year bonds, scheduled for the next three days. It will be a light week for economic news. Stocks, oil, and gold prices all moved higher, the dollar lower. No economic data will be released today.

Daily Market Update 9/4/09

Mortgage rates held steady Friday following mixed jobs data for August. The Labor Department reported the U.S. economy lost 216,000 jobs last month, less than the consensus forecast of -230,000. However, payroll figures for the two previous months were revised down by 49,000, resulting in a jump in the Unemployment Rate to 9.7%, the highest level in 26 years. Stocks moved modestly higher. Next week the Treasury will auction $70 billion of 3-, 10-, and 30-year notes beginning Tuesday. The mortgage-backed securities market will close at 2:00 PM today for the Labor Day Holiday.

Daily Market Update 9/3/09

Rates were little changed Thursday as weekly Jobless Claims came in close to expectations. The Institute for Supply Management services index reported a reading of 48.4, slightly above forecast, but indicating the services sector of the economy remains in contraction. Stocks were mixed. Investors will be closely watching tomorrow's Non-farm Payrolls report for August.

Daily Market Update 9/2/09

Mortgage rates inched lower Wednesday as the 30-year fixed Fannie Mae required net yield fell to its lowest level since July 14. This morning, second quarter Productivity was revised higher to +6.6%, as manufacturers cut expenses. Unit labor costs fell 5.9%, the biggest decline in 9 years. Factory Orders rose 1.3%, below forecast. Minutes from last month's FOMC meeting will come out at 2:00 PM. No other economic data will be released today.

Daily Market Update 9/1/09

Rates held steady Tuesday as stronger than expected economic data was offset by concerns over rising bank losses. The Institute for Supply Management index showed manufacturing expanded for the first time in 19 months. Pending Home Sales increased 3.2% in July, led by low interest rates, distressed sales, and tax incentives for buyers. Construction Spending fell 0.2%, in line with forecast. Stocks fell sharply on growing concerns over bank failures. Last week the FDIC raised its list of problem banks to 416, from 305 three months earlier. Total assets of the banks on the list was nearly $300 billion, while the fund to insure deposits fell to $10.4 billion. The FDIC may soon need to borrow from the Treasury to repay bank depositors. Minutes from last month's FOMC meeting of the Fed will be released tomorrow.

Daily Market Update 8/31/09

Rates were little changed Monday as investors showed little reaction to a better-than-expected Chicago Purchasing Managers Index. The Chicago PMI national manufacturing index came in at 50.0, the dividing line between contraction and expansion. This may be a volatile week for mortgage-backed securities (MBS), with tomorrow's release of the Institute for Supply Management manufacturing index, Wednesday's release of the minutes from last month's Federal Open Market Committee meeting, and Friday's Non-farm Payrolls report for August. Any reaction to Friday's employment data will be exaggerated due to an early market closing and light trading ahead of the Labor Day weekend. No other data will be released today.

Daily Market Update 8/27/09

Mortgage rates remained little changed Thursday as today's economic data came in close to expectations. Weekly Jobless Claims came in at 570,000, while the 4-week moving average fell slightly to 566,000. Second quarter GDP was unchanged from last month's estimate of -1.0%, beating forecast. Stocks moved lower after the FDIC added 111 lenders to its list of "problem banks", pushing the total to 416, a 15-year high. Oil prices dipped below $70 per barrel on increased inventories. The Treasury will hold an auction of 7-year notes this afternoon at 1:00 PM.

Daily Market Update 8/26/09

Mortgage rates were little changed Wednesday. July Durable Goods Orders rose 4.9%, higher than the consensus forecast of 3.2%, however the most closely watched components fell slightly. New Home Sales surged 9.6% in July to the highest level in 10 months, providing further evidence the housing market has begun to stabilize. There will be a 5-year Treasury auction at 1:00 PM.

Daily Market Update 8/24/09

Mortgage rates were little changed Tuesday following this morning's announcement that the Obama Administration will reappoint Ben Bernanke to a second term as Chairman of the Federal Reserve. The White House also increased its estimated budget deficit for the next ten years to $9.05 trillion, roughly $2 trillion more than estimates earlier this year, and in line with projected figures from the Congressional Budget Office. In economic news, the Case-Shiller Home Price Index rose 3% in the second quarter from the first quarter, the first increase in three years. Consumer Confidence rose for the first time in three months, beating forecast. The Treasury will hold an auction of 2-year notes this afternoon.

Daily Market Update 8/24/09

Rates held steady Monday after having risen late Friday. Stronger than expected Existing Home Sales and a relatively upbeat assessment of the economy by Fed Chairman Ben Bernanke pushed stock prices higher and hurt mortgage-backed securities prices last week. No economic data will be released today. The Treasury will begin a large three-day auction tomorrow.

Daily Market Update 8/21/09

Mortgage rates came under upward pressure Friday following a National Association of Realtors report showing July Existing Home Sales rose 7.2%, far above forecast. The annual pace of 5.24 million units was the highest level since August 2007. The housing market has been boosted by sales of foreclosed properties, historically low interest rates, and the $8,000 first-time homebuyer tax credit. Stocks surged, hurting mortgage-backed securities markets. Key economic data due out next week include Durable Goods Orders on Wednesday and revised second quarter GDP figures Thursday. The Treasury will hold record auctions of 2-, 5-, and 7-year notes beginning Tuesday.

Daily Market Update 8/20/09

Mortgage rates held steady Thursday following the release of mixed economic data. Weekly Jobless Claims rose unexpectedly to 576,000, above the consensus forecast of 550,000. Leading indicators rose 0.6%, close to expectations. The Philly Fed index, which measures manufacturing growth in the Philadelphia region, showed expansion for the first time this year. Most analysts had anticipated a decline. The Treasury will announce its funding needs for the next two quarters at 11:00 AM. Investors will be watching closely, as an increased supply of debt may pressure interest rates.

Daily Market Update 8/19/09

Rates inched lower Wednesday as weakness in global stock markets helped mortgage-backed securities markets. No economic data will be released today.

Daily Market Update 8/18/09

Rates were little changed Tuesday. The July Producer Price Index showed a decline of 0.9% from June, and 6.8% year-over-year, indicating that inflation is not a concern in the short term. Housing Starts fell unexpectedly, led by a decline in multi-family units. Building Permits, a leading indicator, fell short of consensus forecast. Stocks moved modestly higher. No other economic data will be released today.

Daily Market Update 8/17/09

Rates moved slightly lower Monday as mortgage-backed securities benefited from a sharp decline in the stock market. The 30-year fixed Fannie Mae required net yield is now at its lowest level since July 14. In economic news, the Empire State regional manufacturing index rose well above consensus forecast. Oil prices fell below $65 per barrel, the dollar moved higher. The July Producer Price Index will be released tomorrow. On Thursday the Treasury will announce its funding needs for the next two quarters. No other data will be released today.

Daily Market Update 8/14/09

Mortgage rates inched lower Friday and have now fallen nearly 3/8% in the past week. The Consumer Price Index (CPI) registered no change from the previous month, in line with expectations. The CPI fell 2.1% year-over-year, the largest annual decrease since 1950. The Producer Price Index will be released next Tuesday. Consumer Sentiment declined last month to its lowest level since March. An increase had been expected. Industrial Production rose 0.5%, beating forecast. No other economic data will be released today.

Daily Market Update 8/13/09

Mortgage rates held steady Thursday following weaker than expected economic data. July Retail Sales fell 0.1%, an increase of 0.7% had been forecast. Weekly Jobless Claims rose to 558,000. Yesterday, the Federal Reserve left interest rates unchanged and suggested that economic activity is leveling out, rather than continuing to decline. Also, the Fed has decided to gradually reduce the size of its Treasury purchases beginning August 19 and will conclude the purchases by the end of October. The Fed expects inflation will remain subdued, and that interest rates will remain at low levels for "an extended period".

Daily Market Update 8/12/09

Rates were little changed Wednesday ahead of this afternoon's Treasury auction and Fed comments. The second leg of a three day Treasury auction takes place at 1:00 PM et. The Federal Open Market Committee (FOMC) of the Fed ends their two day meeting at 2:15 PM. No rate change is expected but investors will be closely watching the FOMC's accompanying statement regarding the state of the economy. This morning, Trade Balance figures came in close to expectations and second quarter Existing Home Sales rose 3.8% from the first quarter. Median prices fell 15.6% from the same period in 2008. No other economic data will be released today.

Daily Market Update 8/11/09

Mortgage rates eased Tuesday as mortgage-backed securities extended yesterday's rally. In economic news, second quarter Productivity increased 6.4%, well above forecast. Many companies have scaled back employees as much as possible in the current downturn, and productivity gains appear to reflected this. Stocks moved lower. Attention will now turn to this afternoon's Treasury auction at 1:00 PM et.

Daily Market Update 8/10/09

Mortgage rates inched lower Monday after having risen about 3/8% last week. No economic data is due out today, but the remainder of the week will be busy. The Fed's FOMC meeting wraps up Wednesday, and while no rate changes are expected, investors will be watching closely for details on when the Fed plans to end its purchase of US Treasurys. Rates may remain volatile throughout the week.

Daily Market Update 8/7/09

Rates moved sharply higher Friday following the release of stronger than expected jobs data. The economy lost 247,000 jobs in July, against a consensus forecast of -300,000. The Unemployment Rate fell to 9.4% from 9.5% in June. Analysts had been expecting an increase to 9.6%. In addition, Average Hourly Earnings rose more than expected. Stock markets rallied, further pressuring Treasurys and mortgage-backed securities. Volatility will likely continue into next week with large Treasury auctions Tuesday, Wednesday, and Thursday, the August FOMC meeting of the Fed on Wednesday, July Retail Sales figures Thursday, and the Consumer Price Index Friday. No other economic data will be released today.

Daily Market Update 8/6/09

Mortgage rates moved higher as weekly Jobless Claims fell by 38,000, far more than expected, to 550,000. The mortgage-backed securities market has been extremely volatile for the past two days ahead of tomorrow's Nonfarm Payrolls report for July. No other economic data will be released today.

Daily Market Update 8/4/09

Rates were little changed Tuesday following reports on June Personal Income and Pending Home Sales. Personal Income fell 1.3%, a bit more than expected, but Pending Home Sales rose 3.6%, easily beating forecast. Stocks were mixed. Investors will now begin turning their attention to Friday's release of Nonfarm Payrolls figures for July. Economists are expecting the report to show a net loss of 300,000 jobs for the month and an increase of .1% in the Unemployment Rate to 9.6%.

Daily Market Update 8/3/09

Rates moved higher Monday following the release of stronger than expected economic data. The Institute for Supply Management (ISM) reported July manufacturing shrank less than forecast, with an ISM index reading of 48.9, the highest level in 11 months. Separately, Construction Spending rose 0.3%. A decline of 0.5% was expected. Stocks and oil prices moved higher. Ford reported July sales increased 2.3% over June, the first month-over-month increase since 2007. The government "cash for clunkers" program was credited with the increase. No other economic data will be released today.

Daily Market Update 7/31/09

Rates inched lower following the release of preliminary second quarter GDP figures. The Commerce Department said the economy contracted 1.0% last quarter, beating forecast. However, first quarter data was revised lower to -6.4% from -5.5%, more than offsetting the better than expected second quarter results. Consumer Spending declined 1.2%, while core PCE, the Fed's preferred measure of inflation, rose at a tame 2% annual rate. Both readings helped mortgage-backed securities (MBS) markets. Yesterday's Treasury auction of 7-year notes was more successful than the two previous days' auctions. Next week may remain volatile for MBS markets, with the release of key economic data each day, including the closely watched Nonfarm Payrolls report due out Friday.

Daily Market Update 7/30/09

Rates moved slightly higher Thursday as concerns grew over poor demand for this week's Treasury auctions. Traders drove yields higher during Wednesday's auction of 5-year notes, raising worries over the burgeoning budget deficit. The government plans to issue $2 trillion in debt this year to finance the rescue and stimulus packages. The Treasury will auction 7-year notes today. In economic news, weekly Jobless Claims came in close to expectations. Stock prices rose. Preliminary second quarter GDP figures will be released tomorrow.

Daily Market Update 7/29/09

Mortgage rates inched lower Wednesday on weaker than expected economic data. June Durable Goods Orders declined 2.5%, well below the consensus forecast of -0.5%. Excluding the volatile transportation component, however, the data showed an increase of 1.1%. Stocks moved lower. Oil prices fell sharply on increased inventory. There will be a 5-year Treasury auction at 1:00, and release of the Fed's Beige Book at 2:00 et.

Daily Market Update 7/28/09

It has been a volatile day for mortgage-backed securities (MBS) markets, with rates improving early, then moving back into unchanged territory. MBS prices rose after Consumer Confidence fell more than forecast. However, this afternoon's Treasury auction of 2-year notes brought disappointing results, causing a reversal in MBS prices. The remainder of the week is likely to be more volatile than usual, with key economic data due out each day, in addition to two more days of large Treasury auctions.

Daily Market Update 7/27/09

Mortgage rates inched higher Monday as investors await this week's record auctions by the Treasury. Over $200 billion in short- and medium-term notes will be sold beginning tomorrow. In economic news, New Home Sales rose 11% in June to 384,000 units, beating the consensus forecast of 352,000. Prices fell 12% from June 2008. Stocks were mixed, the dollar lower. No other economic data will be released today.

Daily Market Update 7/24/09

Mortgage rates held steady Friday after rising nearly 1/4% Thursday. A large rally in the stock market took funds away from bond markets yesterday, hurting mortgage-backed securities (MBS) prices. Supply concerns are weighing down MBS markets this morning. The Treasury will auction $109 billion in 2-, 5-, and 7-year notes next week. In economic news, Consumer Sentiment fell for the first time in five months, but narrowly exceeded forecast. Next week may be volatile, with several key reports due to be released. New Home Sales will come out Monday, Consumer Confidence and Durable Goods Orders Tuesday, and advance second quarter GDP and the Chicago Purchasing Managers Index Friday. No other data will be released today.

Daily Market Update 7/22/09

Rates inched lower Wednesday following yesterday's rally in mortgage-backed securities markets, triggered by testimony from Fed Chief Ben Bernanke. Bernanke, who spoke before the House Financial Services Committee, said the Federal Reserve will keep rates low for an extended period but is prepared to take strong action against inflation once economic recovery takes hold. He also warned Congress and the Administration of the urgent need to reduce the federal budget deficit. Bernanke is scheduled for a second day of testimony today before the Senate Banking Committee, but it is unlikely that market moving comments will emerge. Stocks were mixed. No economic data will be released today.

Daily Market Update 7/21/09

Mortgage rates eased Tuesday following comments by Federal Reserve Chairman Ben Bernanke before the House Financial Services Committee. Bernanke indicated the economy is showing "tentative signs of stabilization" and that the Fed intends to maintain a "highly accommodative" monetary policy for an extended period. He also commented on record budget deficits, saying "Unless we demonstrate a strong commitment to fiscal sustainability, we risk having neither financial stability nor durable economic growth". Stocks moved modestly higher. No economic data will be released today.

Daily Market Update 7/20/09

Rates continued their recent upward trend Monday on new signs the recession may end later this year. Leading Indicators rose 0.7% in June, beating forecast, and marking the third consecutive monthly increase. Stocks moved higher. No other major economic data will be released until Thursday, but investors will be closely watching tomorrow's Congressional testimony by Fed Chairman Ben Bernanke. Analysts expect Bernanke to lay out his plans for exiting the largest monetary expansion in U.S. history.

Daily Market Update 7/17/09

Rates remained little changed Friday in the wake of better-than-expected housing data. June Housing Starts rose 4% to the highest level in seven months. Building Permits, a leading indicator, jumped 9%. Rates have now moved about 1/4% higher over the past week. Stocks turned marginally lower, oil prices higher. Next week will be relatively quiet in terms of new economic data. Existing Home Sales for June will be released Thursday.

Daily Market Update 7/16/09

Mortgage rates were little changed Thursday after mortgage-backed securities recovered losses sustained late Wednesday. Investors shrugged off lower-than-expected weekly Jobless Claims and focused on news that commercial lending giant CIT was nearing bankruptcy following failed negotiations for federal aid. China stepped up purchases of US Treasurys in a "flight to quality". The Philly Fed index, a survey of manufacturing activity in the region, came in below forecast. No other economic data will be released today.

Daily Market Update 7/15/09

Rates moved higher Wednesday as strength in stocks pushed mortgage-backed securities markets lower. The Consumer Price Index (CPI) rose 0.7% in June, in line with expectations. The core CPI, which excludes volatile food and energy components, rose 0.2% for the month. Industrial Production topped forecast, having declined 0.4% in June, as manufacturing began showing signs of stabilization. The FOMC minutes from the June 24 Fed meeting will be released at 2:00 PM et.

Daily Market Update 7/14/09

Mortgage rates inched higher this morning as the June Producer Price Index (PPI) rose more than expected. The closely-watched "core" rate rose 0.5% last month, well above the consensus forecast of 0.1%. The core PPI was 3.4% higher than one year ago. Retail Sales rose 0.5% in June, close to expectations. Stocks moved lower. The Consumer Price Index and minutes from last month's FOMC meeting will be released tomorrow.

Daily Market Update 7/13/09

Mortgage rates were little changed Monday as mortgage-backed securities held gains from last week. Stocks were mixed, oil prices slid below $60 per barrel. Investors are focusing on inflation data to be released over the next two days, beginning with the Producer Price Index on Tuesday, followed by the Consumer Price Index on Wednesday. In addition, minutes from the June 24 FOMC meeting of the Federal Reserve will be released Wednesday.

Daily Market Update 7/2/09

Mortgage rates inched lower Thursday in a shortened session ahead of the July 4th holiday. Non-farm Payrolls fell by 467,000 in June, far more than the consensus forecast of -363,000. The Unemployment Rate rose to 9.5%. Stocks and oil prices moved sharply lower. The European Central Bank (ECB) held rates steady at 1%, as expected. Mortgage-backed securities markets will close this afternoon at 2:00 PM.

Daily Market Update 7/1/09

Mortgage rates were little changed Wednesday as today's economic data came in close to expectations. Construction Spending fell 0.9% in May, a bit more than forecast, while Pending Home Sales rose 0.1%, beating forecast. The Mortgage Bankers Association weekly purchase activity index fell by 5%, while refinancing activity decreased by 30%. The closely-watched Non-farm Payrolls Report for June will be released tomorrow at 8:30 AM.

Daily Market Update 6/30/09

Rates inched higher Tuesday as mortgage-backed securities (MBS) remained volatile, partly due to light trading volume during this holiday-shortened week. Consumer Confidence declined unexpectedly, hurting stocks and providing support to MBS markets. The Chicago Purchasing Managers Index came in close to forecast. No other economic data will be released today.

Daily Market Update 6/29/09

Mortgage rates held steady Monday and have now improved about 1/2% since June 11. This morning Chinese officials reported that China will not pull back from buying US Treasury securities. Investors have recently been concerned that foreign central banks would scale back their purchases, causing upward pressure on rates. No economic data will be released today.

Daily Market Update 6/26/09

Mortgage rates eased Friday as mortgage-backed securities (MBS) markets rallied late Thursday. In economic news, Personal Income grew 1.4% in May, well above expectations. Core PCE, the Fed's preferred measure of inflation, rose a tame 0.1%, matching forecast. Consumer Sentiment reached its highest reading since February 2008. Personal Savings came in at 6.9% last month, the highest level in 15 years. Several key economic reports are due out next week, beginning with the Chicago Purchasing Managers Index Tuesday, the Institute for Supply Management manufacturing index Wednesday, and Non-farm Payrolls Thursday. Markets will be closed Friday for the July 4th Holiday.

Daily Market Update 6/24/09

Mortgage rates inched lower Thursday as weekly Jobless Claims rose to 627,000, above forecast. Final first quarter GDP was revised down to -5.5% from -5.7%. This afternoon's Treasury auction of 7-year notes was met with strong demand, pushing mortgage-backed securities higher. Stocks rallied. Tomorrow's economic data includes Personal Income, the core PCE Index, and Consumer Sentiment.

Daily Market Update 6/24/09

Mortgage rates held steady Wednesday morning, but came under pressure following the Federal Open Market Committee (FOMC) meeting. The Fed indicated its plan for the purchase of Treasurys and mortgage-backed securities (MBS) would remain unchanged. Investors had hoped for an increase in Fed purchases of MBS's to drive down rates. The FOMC said it "expects that inflation will remain subdued for some time". In economic news, May Durable Goods Orders rose 1.8%, far above consensus forecast of -0.5%. New Home Sales fell 0.6%, below expectations. Stocks were mixed. The MBS market will likely remain volatile while investors digest the latest policy decisions by the Fed.

Daily Market Update 6/23/09

Mortgage rates were little changed Tuesday. Existing Home Sales rose 2.4% in May, but fell short of expectations. The Treasury will begin its $104 billion, three-day auction this afternoon at 1:00 PM et. No other economic data will be released today.

Daily Market Update 6/22/09

Rates moved lower Monday as the World Bank raised its forecast for global economic contraction for 2009 to 2.9% from 1.7%. Stocks fell sharply. This may be a volatile week for mortgage-backed securities (MBS) with large Treasury auctions each of the next three days and the Fed meeting Wednesday. Durable Goods Orders, an important indicator of overall economic activity, will be released Wednesday. The Core PCE index, the Fed's preferred measure of inflation, will come out on Friday. No economic data will be released today.

Daily Market Update 6/19/09

Rates were little changed Friday after having risen late Thursday. Treasurys and mortgage-backed securities (MBS) came under pressure following yesterday's announcement of a larger than expected, $107 billion auction of 2-, 5-, and 7-year Treasury notes slated for next week. Supply concerns and improved economic growth prospects have been the major factors behind the recent rise in mortgage rates. The MBS market is likely to remain volatile through next week given the size of the Treasury auction and Wednesday's FOMC meeting of the Federal Reserve. No economic data will be released today.

Daily Market Update 6/18/09

Mortgage rates inched higher Thursday on stronger than expected economic data. Leading Indicators rose 1.2% in May, following a 1.0% increase in April. Weekly Jobless Claims came in close to consensus, while continuing Jobless Claims declined for the first time in twenty weeks. It appears that the pace of job losses has stabilized, but growth in new job creation has been slow to develop. The Treasury will announce the size of next week's 2-, 5-, and 7-year note auctions later today.

Daily Market Update 6/17/09

Rates eased Wednesday following Consumer Price Index (CPI) data that indicated inflation is not a concern in the near-term. May CPI rose 0.1% from April, lower than the consensus forecast of 0.3%. Year-over-year, the CPI fell 1.3%, the largest annual decline since 1950. The core CPI, which excludes food and energy components, rose at a tame 1.8% annual rate. Investors are now looking ahead to next week's FOMC meeting of the Federal Reserve. While no rate change is expected, much emphasis will be placed on the Fed's statement regarding the timing of future rate moves and their plans for continued purchases of mortgage-backed securities.

Daily Market Update 6/16/09

Mortgage rates held steady Tuesday following the release of tame inflation data. The Producer Price Index rose 0.2% last month, while the more closely watched "core" rate, excluding volatile food and energy components, fell 0.1%. May Housing Starts rose 17.2% from April, exceeding expectations, but well below last year's levels. Industrial Production fell 1.1% in May, close to forecast. Stocks moved modestly higher. No other economic data will be released today.

Daily Market Update 6/12/09

Mortgage rates eased for the first time in several days Friday following strong demand for this week's Treasury auctions. Behind the recent rise in mortgage rates has been an improved economic outlook and concerns about the enormous supply of new debt needed to pay for government programs. This leaves the Fed in a difficult position. Fed officials would like to keep mortgage rates low, but to accomplish this, would have to increase purchases of mortgage-backed securities (MBS). Doing so would add even more debt, fueling inflation concerns. Most analysts believe the Fed is unlikely to expand its MBS purchase program.

The most significant economic data next week will be the monthly inflation reports. The Producer Price Index will come out on Tuesday, the Consumer Price Index on Wednesday. In addition, Housing Starts and Industrial Production will be released Tuesday.

Daily Market Update 6/11/09

Mortgage rates were little changed Thursday in the wake of better than expected economic data. Retail Sales rose 0.5% in May, the first increase in 3 months, beating consensus forecast. Weekly Jobless Claims fell by 20,000 to 601,000, indicating the pace of job losses may be slowing. Stocks moved higher. The Treasury will auction $11 billion of 30-year notes this afternoon. Mortgage rates have now risen by 1% in the past 3 weeks. Concerns over the growing budget deficit have raised fears of future inflation among investors and frustrated Fed efforts to hold down long-term interest rates.

Daily Market Update 6/10/09

Mortgage rates inched higher Wednesday ahead of this afternoon's $19 billion auction of 10-year Treasury notes. Russia announced plans to reduce their share of US debt in reserve holdings, pressuring longer-term yields. The Fed's Beige Book, a survey of economic conditions by the Federal Reserve's 12 regional banks, will be released at 2:00 PM. Oil prices rose above $70 per barrel. Stocks moved modestly lower. Retail Sales figures for May will be released tomorrow morning.

Daily Market Update 6/9/09

Mortgage rates held steady Tuesday following Monday's sell-off in mortgage-backed securities. Investor sentiment shifted in the wake of last Friday's stronger than expected Employment Report. Many investors now believe the Fed need to will raise rates later this year to begin curbing inflation. Treasury Secretary Timothy Geithner testifies today at a budget hearing on Capitol Hill. The Treasury will auction 3-year notes this afternoon at 1:00 PM et. No major economic data will be released today.

Daily Market Update 6/8/09

Mortgage rates inched higher Monday as inflation fears continued growing. The Chicago Board of Trade reported investors are now estimating a 36% chance the Fed will raise rates by September in an effort to curb inflation, up from 15% one week ago. This will be a relatively light week in terms of new economic data with the exception of Retail Sales figures on Thursday. Investors are likely to focus on the results of the 10- and 30-year Treasury auctions taking place Wednesday and Thursday. Stocks moved lower, the dollar higher.

Daily Market Update 6/5/09

Interest rates rose sharply Friday following the Non-farm Payrolls report for May. The U.S. economy lost 345,000 jobs for the month, far below consensus forecast of -525,000. The Unemployment Rate jumped to 9.4%, the highest level in 25 years. Mortgage rates have risen by about 3/4% in the past two weeks, largely due to debt supply concerns. Investors in Treasurys and mortgage-backed securities have become increasingly nervous about the massive budget deficits and apparent lack of fiscal discipline of the Federal government. Reports surfaced this week by analysts saying that China and other foreign investors are choosing to invest in shorter-term US bonds rather than longer-term bonds due to growing fears of future inflation stemming from current economic policies. The Treasury will auction $65 billion in 3-, 10-, and 30-year notes next week. Retail Sales figures for May will be released Thursday.

Daily Market Update 6/4/09

Mortgage rates inched higher Thursday as the number of people filing unemployment insurance declined for the first time in five months. Weekly Jobless Claims fell to 621,000, in line with expectations. First quarter Productivity was revised higher to +1.6%, above consensus forecast of +1.2%. Unit Labor Costs, a measure of inflation, rose 3.0% in the first quarter. The European Central Bank (ECB) and Bank of England (BOE) both held rates steady, as expected. Stocks moved modestly higher. Non-farm Payrolls and the Unemployment Rate for May will be released tomorrow at 8:30 AM et.

Daily Market Update 6/3/09

Mortgage rates held steady Wednesday. In economic news, Factory Orders rose 0.7% last month, exceeding forecast and reversing a 0.9% decline in April. The Institute for Supply Management services index contracted at a slower pace in May, but fell short of expectations. Federal Reserve Chairman Ben Bernanke testified on Capitol Hill this morning, saying, "In recent weeks, yields of longer-term Treasury securities and fixed-rate mortgages have risen. These increases appear to reflect concerns about large federal deficits but also other causes, including greater optimism about the economic outlook, a reversal of flight-to-quality flows and technical factors related to the hedging of mortgage holdings." On the matter of budget deficits, Bernanke said, "Maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance." The Congressional Budget Office projects the deficit to reach $1.85 trillion this year, four times the previous high. Stocks moved lower. No other economic data will be released today.

Daily Market Update 6/2/09

Mortgage rates were little changed Tuesday following Monday's sell-off of Treasurys and mortgage-backed securities, although it has been a volatile session. The National Association of Realtors reported a 6.7% rise in Pending Home Sales in April, following a 3.2% gain in March. While nearly half of reported sales were "distressed" properties, many analysts view the results as evidence the housing market has reached bottom. Stocks moved modestly higher. No other economic data will be released today.

Daily Market Update 6/1/09

Interest rates rose again Monday as stocks rallied on fresh economic data indicating the economy has begun to stabilize. Personal Income rose 0.5% last month, beating consensus forecast of -0.2. Construction Spending increased 0.8% in April. A decline of 1.8% had been expected. The Institute for Supply Management reported the smallest contraction in U.S. manufacturing in 8 months. Mortgage-backed securities are likely to remain volatile throughout the week ahead of this Friday's Non-farm Payrolls report for May.

Daily Market Update 5/29/09

Mortgage rates were little changed Friday, although 30-year fixed rates rose about 1/2% for the week. Investors shrugged off new economic data and focused instead on the rising budget deficit and increased borrowing needs of the Federal Government. The risk of higher inflation in coming years threatens to limit the Fed's ability to hold down long term interest rates to stimulate the economy. In economic news, the Chicago Purchasing Managers Index fell unexpectedly last month, showing a continued decline in business activity. First quarter GDP was revised to -5.7%, a bit worse than forecast. Consumer Sentiment increased slightly. Crude oil prices hit a six month high at $66 per barrel. The closely watched Non-farm Payrolls report for May will be released next Friday. Mortgage-backed securities may remain volatile through the week.

Daily Market Update 5/28/09

Mortgage rates spiked higher yesterday afternoon as investors became increasingly concerned that the government's approach to stimulating the economy would lead to inflation. The U.S. government will need to sell nearly $2 trillion in Treasury bonds this year to fund the massive Federal budget deficit. Rates reached their highest levels since November, complicating efforts by the Fed to revive the real estate market by keeping borrowing costs low. In economic news, New Home Sales rose 0.3% in April, less than expected. Durable Goods Orders increased 1.9% last month, beating forecast. Weekly Jobless Claims came in close to expectations. The mortgage-backed securities market showed little immediate reaction to the data. Stocks moved lower. Today's session is likely to remain highly volatile.

Daily Market Update 5/27/09

Mortgage rates moved higher Wednesday as investors sold mortgage-backed securities ahead of today's Treasury auction of 5-year notes and tomorrow's auction of 7-year notes. In economic news, Existing Home Sales rose 2.9% in April, beating forecast. The national median price fell 15.4% from a year earlier, as distressed properties accounted for 45% of all sales. Stocks were mixed. Durable Goods Orders and New Home Sales data will be released Thursday.

Daily Market Update 5/26/09

Mortgage rates were little changed Tuesday as Consumer Confidence rose to its highest level in nine months. Several key economic reports are due out this week including New and Existing Home Sales, Durable Goods Orders, Chicago Purchasing Managers Index and the ISM manufacturing index. In addition, the Treasury will auction $101 billion of 2-, 5-, and 7-year notes over the next three days. The mortgage-backed securities market may be volatile through the week.

Daily Market Update 5/22/09

Interest rates rose Friday following a late sell-off in Treasurys and mortgage-backed securities (MBS) Thursday. Treasurys have been hit especially hard this week, with the yield on the 10-year note reaching 3.4% this morning, the highest level since November 19. Yesterday the Treasury announced plans to auction $101 billion in 2-, 5-, and 7-year notes next week, in addition to $61 billion in 6-week and 3-month notes. The extraordinarily large auctions are needed to finance this year's projected federal budget deficit of $1.84 trillion. Rates have risen as investors have become increasingly concerned about the high level of government debt. MBS markets have out-performed Treasurys, but mortgage rates inched higher for the week. The dollar fell against most major currencies. Stocks were mixed. The market will close today at 2:00 PM and will not reopen until Tuesday.

Daily Market Update 5/21/09

Mortgage rates were little changed Thursday as stocks fell sharply. Weekly Jobless Claims were reported at 631,000, close to consensus forecast. Leading Indicators rose 1.0% last month, beating expectations. Freddie Mac reported average conventional 30-year fixed rates of 4.82% with 0.6 points for the past week. The mortgage-backed securities market will close tomorrow at 2:00 PM for the Memorial Day Holiday.

Daily Market Update 5/20/09

Mortgage rates held steady Wednesday as stocks rallied. In spite of lackluster data, investors have become increasingly optimistic about the overall direction of the economy in recent weeks. Oil prices rose above $60 per barrel, the dollar fell against the euro. The Fed will release minutes from last month's FOMC meeting today at 2:00 PM et. No surprises are expected.

Daily Market Update 5/19/09

Mortgage rates inched higher Tuesday following yesterday's stock market rally. In economic news, Housing Starts fell 13% in April, driven by weakness in construction of condominiums and apartment buildings. Financing of these properties has become more restrictive in recent months. Construction of single family units rose 2.8% in April, the second consecutive monthly increase, fueling optimism that the housing market may be stabilizing. No other economic data will be released today.

Daily Market Update 5/18/09

Mortgage rates were little changed Monday as no new economic data is due out today. Stocks are higher. The Fed will release minutes from last month's FOMC meeting Wednesday. The market will close early Friday for the Memorial Day Holiday.

Daily Market Update 5/15/09

Mortgage rates were little changed Friday as April's Consumer Price Index (CPI) was unchanged from March. The CPI fell on an annualized basis -0.7% from last April. The more closely watched core rate, excluding food and energy, rose 0.3%, a bit more than expected. Industrial Production fell -0.5% in April, close to consensus forecast. Consumer Sentiment rose to its highest reading since last September, providing evidence the economy has begun to stabilize. No major economic reports are due out next week. Investors are likely to turn their focus to events in Washington and securities purchases by the Fed.

Daily Market Update 5/14/09

Mortgage rates held steady Thursday as today's economic data caused little reaction in mortgage-backed securities markets. The April Producer Price Index rose 0.3%, while the more closely watched "core" rate, excluding food and energy components, rose 0.1%, in line with expectations. Weekly Jobless Claims jumped to 637,000, higher than forecast. Stocks moved modestly higher. No other economic data will be released today.

Daily Market Update 5/13/09

Mortgage rates were little changed Wednesday, as Treasuries outperformed mortgage-backed securities following weaker than expected Retail Sales data. Stocks fell sharply. April Retail Sales declined -0.4%, below the consensus forecast of -0.1%. Consumers have reduced spending due to uncertainty about the economy and rising unemployment. Separately, Import Prices excluding oil declined -0.4%, easing inflation fears. The Producer Price Index will be released tomorrow.

Daily Market Update 5/12/09

Mortgage rates inched lower Tuesday following a rally in Treasury and mortgage-backed securities prices Monday. In economic news, the National Association of Realtors reported a 14% decline in the median price of U.S. homes in the first quarter of 2009 compared to a year earlier, driven by high levels of "distressed" sales. On a positive note, the inventory of homes listed for sale fell slightly in March. The Trade Deficit rose last month, but remained below estimates. Retail Sales figures for April will be reported tomorrow.

Daily Market Update 5/11/09

Mortgage rates eased Monday following last week's brief run-up. The recent rise in yields has led several of the world's largest investors to conclude the Fed will increase purchases of Treasuries and mortgage-backed securities (MBS) to keep long-term rates low. Treasuries have been hit harder than MBS, with the 10-year yield having risen 83 basis points, from 2.46% on March 19 to 3.29% last Friday. MBS yields have increased 33 basis points over the same period. No economic data will be released today.

Daily Market Update 5/8/09

Mortgage rates moved higher Friday, triggered by yesterday's poor results of the 30 year Treasury auction. Rates are now at their highest levels since March 25. Investors are becoming increasingly concerned about the long-term prospects for interest rates as the economy continues showing signs of stabilization. Mortgage-backed securities had little reaction to today's Non-farm Payrolls report that showed the U.S. economy lost 539,000 jobs in April, less than forecast. The Unemployment Rate rose to 8.9%, as expected. Average Hourly Earnings, a proxy for wage growth, rose a slim 0.1%. Stocks moved higher, the dollar fell. Several key economic reports are due out next week, including Retail Sales on Wednesday, the Producer Price Index Thursday, and the Consumer Price Index and Industrial Production Friday.

Daily Market Update 5/7/09

Rates inched higher Thursday as mortgage-backed securities markets were hurt by signs of stronger global economic growth. Weekly Jobless Claims fell to 601,000, the lowest level since January. First quarter Productivity rose 0.8%, a bit more than expected. Unit Labor Costs, a measure of wage inflation, climbed 3.3%. Results of the government's stress tests for 19 large financial institutions are scheduled to be released at 5:00 PM et. Stocks and the dollar moved lower, oil prices higher. Non-farm Payrolls for April will be released tomorrow morning.

Daily Market Update 5/6/09

Mortgage rates were little changed Wednesday after the ADP private payrolls firm estimated fewer job losses in April than expected. Stocks and oil prices rallied. Consensus is growing among investors that the recession is easing. The Mortgage Bankers Association reported a 5% increase in weekly purchase activity. Average rates for last week rose to 4.79% with 0.7 points. Freddie Mac estimated that first quarter refinances saved homeowners an aggregate $2.5 billion annually in monthly mortgage payments. No other key economic data will be released today.

Daily Market Update 5/5/09

Mortgage rates inched lower Tuesday, outperforming Treasurys. The Institute for Supply Management services index rose in April to its highest level since October, beating forecast. Fed Chairman Bernanke, in testimony on Capitol Hill, expressed cautious optimism about the economy, saying, "We continue to expect economic activity to bottom out, then to turn up later this year." He also warned of dangers to the economic recovery if the financial system suffers a relapse. Stocks moved generally lower. The Treasury will auction a total of $71 billion of 3-, 10-, and 30-year notes over the next three days. Supply concerns continue to weigh heavily on the Treasury market.

Daily Market Update 5/4/09

Mortgage rates held steady Monday in spite of new data suggesting the housing market may be nearing bottom. Construction Spending rose last month for the first time in six months. Also, the National Association of Realtors reported Pending Home Sales increased 3.2% in March. Both reports beat consensus forecast. Stocks moved sharply higher. The results of the government "stress test" for 19 large financial institutions will be released Thursday. Non-farm Payrolls for April will be reported Friday.

Daily Market Update 5/1/09

Interest rates continued their upward trend Friday following the release of stronger than expected economic data. Consumer Sentiment rose to its highest level since September 2008. The Institute for Supply Management manufacturing index increased to a reading of 40.1, up from last month's 36.3, and above consensus forecast. Factory Orders declined -0.9% in March. Stocks moved modestly lower. A more optimistic economic outlook and lack of new Fed actions to hold down yields pushed Treasury and mortgage rates higher for the week. The 10-year Treasury yield is now at the highest level since November. Investors will be closely watching next Friday's Non-farm Payrolls report for April.

Daily Market Update 4/30/09

Mortgage rates inched higher again Thursday following the release of stronger than expected economic data. Weekly Jobless Claims came in below forecast, while the Chicago Purchasing Managers Index rose last month to a reading of 40.1, well above the consensus estimate of 35. Mortgage-backed securities have also been hurt this week by the rise in stock prices. The Institute for Supply Management manufacturing index will be released tomorrow.

Daily Market Update 4/29/09

Mortgage rates rose Wednesday as stocks surged following preliminary first quarter Gross Domestic Product (GDP) data. GDP fell -6.1%, compared to a consensus forecast of -4.7%, but a breakdown of the report shows the large drop was mainly due to declines in inventories and business investment. Consumer spending actually far exceeded expectations. If the consumer trend continues, businesses will have to begin rebuilding depleted inventories of goods, lifting future economic activity. Separately, the Treasury announced it will sell $71 billion in long-term debt next week, a record high. This afternoon the Fed will wrap up a two-day FOMC meeting. There is no broad consensus on what the Fed will announce. Investors will be closely watching the Fed's outlook for the economy. The last Fed announcement on March 18 produced a huge reaction in mortgage-backed securities markets. A $26 billion 7-year Treasury auction will take place at 1:00 PM et, the Fed announcement will come at 2:15. It could be a volatile day.

Daily Market Update 4/28/09

Mortgage rates were little changed Tuesday. Consumer Confidence rose in April, far exceeding expectations. Preliminary first quarter GDP figures will be released tomorrow morning, followed by the Fed's FOMC meeting. Stocks were mixed. No other economic data will be released today.

Daily Market Update 4/27/09

Mortgage rates inched lower Monday as concerns about the spread of swine flu has hurt stocks and helped mortgage-backed securities. Investors are likely to focus on three large Treasury auctions this week and Wednesday's Federal Open Market Committee meeting. A $40 billion 2-year Treasury auction will take place this afternoon at 2:00 PM. No economic data will be released today.

Daily Market Update 4/24/09

Mortgage rates were little changed Friday as mortgage-backed securities outperformed Treasurys. In economic news, Durable Goods Orders fell 0.8%, less than forecast. New Home Sales declined 0.6%, beating expectations. Inventories of unsold homes dropped 5.2% in March, providing evidence the housing market may be stabilizing. Stocks and oil prices moved higher, the dollar lower. The latter half of next week will be busy in terms of key economic data. First quarter GDP will be released Wednesday, the same day as the Federal Open Market Committee meeting of the Federal Reserve. The Chicago Purchasing Managers Index will be released Thursday, followed by Friday's Institute for Supply Management manufacturing index. Investors will be watching each of these reports closely for signs of economic stabilization. Once traders consider the worst of the recession to be over, rates will move higher.

Daily Market Update 4/23/09

Mortgage rates held steady Thursday. Weekly Jobless Claims came in close to expectations, while Existing Home Sales declined 3%, exceeding forecast. One bright spot was a reported 4.2% increase in the median sale price in March from February, reversing earlier trends. Stocks moved lower. Durable Goods Orders and New Home Sales will be released Friday.

Daily Market Update 4/22/09

Mortgage rates inched higher Wednesday as stocks rebounded from sharp losses earlier in the week. Even so, our conventional 30-year fixed rate with no points or origination fee has remained at or below 5.0% since April 7. Low inflationary pressures and Fed purchases of mortgage-backed securities continue to offset concerns about the future supply of Treasury bonds needed to pay for excessive government debt. No economic data will be released today.

Daily Market Update 4/21/09

Mortgage rates inched lower Tuesday as mortgage-backed securities markets benefited from Monday's sharp stock sell-off. Investors have begun questioning the sustainability of the recent stock market rally given the depth of our current recession. The next major economic data will be released Thursday, consisting of weekly Jobless Claims, Durable Goods Orders, and Existing Home Sales.

Daily Market Update 4/20/09

Mortgage rates came in slightly lower Monday, buoyed by falling stock prices. The Conference Board's Index of Leading Indicators fell 0.3% last month, a bit more than forecast, indicating the recession is likely to last for several more months. Oil prices fell nearly $4 per barrel on weakening demand. The dollar moved higher. No more data will be released today.

Daily Market Update 4/17/09

Mortgage rates inched higher Friday to finish the week nearly unchanged from Monday. Despite a wide range of economic data and news released during the week, the outlook for the two major current influences on mortgage-backed securities prices, inflation and Fed purchases, remained the same. Consumer Sentiment rose last month to the highest level since September on indications the economy may be stabilizing. Few key economic reports are scheduled for release next week.

Daily Market Update 4/16/09

Mortgage rates remained little changed Thursday following the release of mixed economic data. Weekly Jobless Claims declined unexpectedly while Housing Starts fell short of expectations. Yesterday the Federal Reserve's Beige Book, a survey of economic activity by the Fed's 12 regional banks, showed signs the pace of decline may be easing. Consumer Sentiment will be released tomorrow at 10:00 AM.

Daily Market Update 4/15/09

Rates held steady Wednesday as year-over-year Consumer Prices declined for the first time since 1955. The Consumer Price Index for March fell 0.1%, totalling a 0.4% drop over the past 12 months. Industrial Production fell 1.5% in March, exceeding forecast. The Fed's Beige Book, a survey of economic conditions by the Federal Reserve's 12 regional banks, will be released at 2:00 PM.

Daily Market Update 4/14/09

Mortgage rates inched lower Tuesday following the release of weaker than expected economic data. Retail Sales fell 1.1% in March, indicating recovery from the current recession may be slow. The Producer Price Index declined 1.2%, while the closely watched "core" rate was unchanged. Stocks moved lower. The Consumer Price Index, Industrial Production, and the Fed's Beige Book will be released tomorrow.

Daily Market Update 4/9/09

Interest rates rose Thursday as global stock markets rallied on a stronger than expected earnings report from banking giant Wells Fargo. February's Trade Gap narrowed unexpectedly, hitting a 9-year low, on weak demand for foreign goods. Several key economic reports are due out the middle of next week, including the Producer Price Index and Retail Sales data on Tuesday, and Wednesday's release of the Consumer Price Index, Industrial Production, and the Fed's Beige Book. The mortgage-backed securities market closes today at 2:00 PM et for the Easter Holiday. No new rates will be issued tomorrow.

Daily Market Update 4/8/09

Mortgage rates inched lower Wednesday following strong demand for the 3-year Treasury auction. Minutes from the March 18 FOMC meeting indicated Fed officials were concerned about the risk that economic growth will be slower than expected in the second half of 2009 and in 2010. Stocks rose modestly. Tomorrow, weekly Jobless Claims, the Trade Balance, and Import Prices will be released at 8:30 AM. There will be a 10-year Treasury auction at 1:00 PM.

Daily Market Update 4/7/09

Mortgage rates eased Tuesday morning as stocks fell for a second straight day. Investors remain concerned over a slew of earnings reports due out this week and next. Billionaire financier George Soros warned that the recent stock market rally would likely be temporary. General Motors appeared to be making preparations for a possible reorganization under Chapter 11 bankruptcy. No major economic reports will be released today. The market will be closed Friday for Easter Holiday.

Daily Market Update 4/6/09

Mortgage rates were little changed Monday. Stock prices fell sharply as investors anticipated weak quarterly earnings reports later this week. Bank shares were especially hard-hit. No economic data will be released today.

Daily Market Update 4/3/09

Mortgage rates inched higher Friday reflecting a decline in mortgage-backed securities prices late Thursday. Non-farm Payrolls data showed a net loss of 663,000 jobs last month, close to consensus. The Unemployment Rate jumped to 8.5%, matching expectations. Average Hourly Earnings, a proxy for wage growth, matched forecast, rising at a 3.4% annual rate. The Institute for Supply Management services index fell more than expected in March. Average 30-year fixed mortgage rates declined to 4.78% with 0.7 points according to Freddie Mac's weekly survey, the lowest level on record. No major economic data is scheduled for release next week.

Daily Market Update 4/1/09

Interest rates moved higher Thursday as global stock markets rallied on perceived progress in the G-20 meeting and news from the Financial Accounting Standards Board (FASB) of relaxed controversial "mark-to-market" accounting rules that have plagued banks and other financial firms. In economic news, Factory Orders rose 1.8% in March, exceeding forecast. Oil prices surged to nearly $52 per barrel. The dollar declined. Analysts are seeing strong indications the economy is no longer in free-fall and has begun to stabilize. Non-farm payrolls for March will be released at 8:30 AM Friday.

Daily Market Update 4/1/09

Mortgage rates held steady Wednesday following the release of stronger than expected economic data. Pending Home Sales increased 2.1% in February, driven by low interest rates and the $8,000 first-time homebuyer tax credit. The Institute for Supply Management manufacturing index rose in March. U.S. manufacturing is still declining, but at a slower pace than in February. Construction Spending fell 0.9%, beating consensus estimates of a 2% drop. While today's data continues to show a struggling economy, analysts are beginning to see signs of stabilization. Stocks moved modestly higher. Investors are now turning their focus to the single, most important report of the month, Friday's Non-farm Payrolls for March. The Unemployment Rate is expected to rise to 8.5% from last month's 8.1%. A larger increase could hurt stocks and help mortgage-backed securities.

Daily Market Update 3/31/09

Mortgage rates were little changed Tuesday. Stocks partially rebounded from yesterday's sharp sell off. The Chicago Purchasing Manager's Index came in below consensus forecast, showing continued weakness in the economy. Consumer Confidence rose slightly from February but remained near record lows. No other economic data will be released today.