Daily Market Update 12/23/10

Mortgage rates were little changed Thursday in quiet trading. In economic news, Durable Goods Orders fell 1.3%, a bit more than expected. Excluding volatile transportation orders, however, the results exceeded expectations. November Personal Income rose 0.3%, beating forecast. The Core PCE price index, the Fed's preferred measure of inflation, rose at a tame 0.8% annual rate, matching October's record low level. Weekly Jobless Claims remained unchanged at 420,000. New Home Sales came in at 290,000, a bit weaker than expected. The Treasury will auction $99 billion of 2-, 5-, and 7-year notes next week. Mortgage-backed securities markets will close early today and remain closed until Monday. Merry Christmas!

Daily Market Update 12/22/10

Mortgage rates held steady Wednesday morning. In economic news, third quarter GDP was revised higher to +2.6% annual growth, slightly below forecast. Existing Home Sales rose 5.6%, in line with expectations. The Mortgage Bankers Association weekly purchase activity index fell by 3%, while the refinancing activity index plummeted by 25% on higher interest rates. Average reported 30-year fixed rates for the prior week rose to 4.85% not including fees. No other data will be released today.

Daily Market Update 12/21/10

Rates were little changed Tuesday. No key economic data will be released today, but it may be another volatile session due to extremely light trading volume. Stocks moved higher as tensions eased between North and South Korea.

Daily Market Update 12/20/10

Rates moved lower Monday. The final two weeks of December is often volatile as trading is light, therefore any movement in markets tends to be exaggerated. No economic data will be released today.

Daily Market Update 12/17/10

Mortgage rates inched lower Friday as mortgage-backed securities stabilized for the first time this week. As expected, Congress passed the new tax deal last night. The news had already been priced in, so there was little reaction by investors. Leading Indicators rose 1.1% in November, the most in 8 months, but slightly below expectations. Next week will be relatively quiet in terms of new economic data. Existing Home Sales figures will come out on Wednesday, New Home Sales on Thursday. Durable Goods Orders will also be released on Thursday. The market will be closed next Friday. No other data will be released today.

Daily Market Update 12/16/10

Mortgage rates moved higher Thursday reflecting Wednesday's late sell-off of mortgage-backed securities. 30-year fixed rates have now risen by about 1% over the past five weeks. Trading remains highly volatile. In economic news, November Housing Starts rose 4% to an annual rate of 555,000 units, beating forecast. Separately, Building Permits, a leading indicator, fell 4% to the lowest level since April 2009. Weekly Jobless Claims declined to 420,000, in line with expectations. The tax deal passed the Senate yesterday and a vote in the House is expected today. Investors are waiting for news from Europe about the aid package for countries with debt troubles. No other data will be released today.

Daily Market Update 12/15/10

Mortgage rates stabilized Wednesday morning after rising sharply on Tuesday. The market showed little reaction to today's economic data. The November Consumer Price Index (CPI) rose 0.1% from October, below the consensus forecast of +0.2%, and 1.1% higher than one year ago. Core CPI, which excludes volatile food and energy components, rose at a tame 0.8% annual rate. Industrial Production rose 0.4% in November, slightly above expectations. The Mortgage Bankers Association weekly purchase activity index fell by 5%, while the refinancing activity index decreased by 0.7%. Average reported 30-year fixed rates for the past week rose to 4.84% not including fees, the highest level in seven months. No other key economic data will be released today.

Daily Market Update 12/14/10

Mortgage rates faced upward pressure Tuesday following the release of stronger than expected economic data. The November Producer Price Index rose 0.8% from October, above the consensus forecast of +0.5%, fueling fears of inflation. November Retail Sales rose 0.8%, beating the consensus of +0.5%. Also pressuring mortgage-backed securities markets, the Senate moved closer to passing the tax deal. Investors are concerned about the impact the plan will have on the budget deficit. Today's FOMC meeting announcement will be made at 2:15 PM. No rate changes are expected, but analysts will be looking for an update on the Fed's "quantitative easing" program.

Daily Market Update 12/13/10

Rates continued moving higher Monday after reports from China showed that inflation exceeded forecast. Investors are concerned that higher inflation in China may indirectly lead to higher future inflation in the US. No economic data will be released today, but the rest of the week will be busy. The most closely-watched event for the week will be tomorrow's FOMC meeting of the Fed.

Daily Market Update 12/10/10

Mortgage rates inched higher Friday on stronger than expected economic data. The Trade Deficit fell to $38.7 billion, below the consensus forecast of -$44.0 billion. Import Prices, excluding oil, rose 0.8%. Consumer Sentiment increased to 74.2, beating expectations. Stocks were mixed. Next week will be busy in terms of new data. The Producer Price Index and Retail Sales figures will come out on Tuesday, the Consumer Price Index and Industrial Production on Wednesday. Also Tuesday, the Fed will hold its periodic FOMC meeting to discuss monetary policy. While no rate changes are expected, investors will be watching closely for clues about the future of the Fed's "quantitative easing" program. Rates may remain volatile over the next several days. No other key data will be released today.

Daily Market Update 12/9/10

Mortgage rates were little changed Thursday as mortgage-backed securities prices stabilized for the first time since Monday's announcement of a tentative agreement between the Obama Administration and Republican leaders to extend tax cuts and unemployment benefits. In economic news, weekly Jobless Claims fell to 421,000, below the consensus forecast of 425,000. Stocks were mixed. Results from today's 30-year Treasury auction will be released at 1:00 PM. No other key data will be released today.

Daily Market Update 12/8/10

Rates continued moving higher Wednesday as the Fannie Mae 30-year fixed required net yield reached its highest level since June 3. Concern by investors over budget deficits, weak demand for Treasurys, and the prospect for stronger economic growth as a result of the proposed tax package weighed heavily on the mortgage-backed securities market. Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 12/7/10

Rates spiked Tuesday following news of a tentative agreement between the Obama Administration and Republican leaders on an extension of tax cuts and unemployment benefits. The deal would add an estimated $700 billion to the deficit, which would likely pressure fixed income securities such as Treasurys and mortgage-backed securities. The 10-year Treasury yield hit its highest level since mid-July. Stocks moved modestly higher. No economic data will be released today.

Daily Market Update 12/6/10

Mortgage rates were little changed Monday. With no major economic data scheduled for release this week, investors will be focusing on large Treasury auctions of 3-, 10-, and 30-year securities over three days beginning Tuesday. Other external issues, such as the fate of the Bush tax cuts and extension of unemployment benefits, may influence rates in the coming days.

Daily Market Update 12/3/10

Rates inched lower Friday following a disappointing employment report. The economy added 39,000 jobs last month, well below the consensus forecast of +150,000. The Unemployment Rate rose to 9.8%, the highest level since April. Average Hourly Earnings, a proxy for wage growth, was unchanged. Today's data makes it less likely that the Fed's quantitative easing program will end early. Separately, Factory Orders fell 0.9%, while the Institute for Supply Management services index rose to 55.0. Stocks were mixed. No other data will be released today.

Daily Market Update 12/2/10

Rates moved higher Thursday on stronger than expected housing data and investor optimism over the direction of the economy. The 30-year fixed Fannie Mae required net yield reached its highest level since June 16. Weekly Jobless Claims rose to 436,000, above the consensus forecast of 425,000. The more closely-watched four-week average declined to 431,000, the lowest level in two years. Pending Home Sales surged unexpectedly by 10.4% in October as buyers took advantage of low interest rates and distressed sales. No other data will be released today. Tomorrow, the Non-farm Payrolls report for November will be released at 8:30 AM.

Daily Market Update 12/1/10

Mortgage rates moved higher Wednesday after the President of the European Central Bank suggested that the ECB would purchase additional troubled assets to support weaker nations, reducing the risk of defaults on government debt. Stocks rallied on the news, pushing bond markets lower. In economic news, third quarter Productivity was revised higher to 2.4%, close to forecast. The Institute for Supply Management manufacturing index fell to 56.6, in line with expectations. The Mortgage Bankers Association weekly purchase activity index increased by 1%, while the refinancing activity index decreased by 22% as mortgage rates moved higher. Average reported 30-year fixed rates for the week rose to 4.56%, not including fees. The Beige Book, a survey of economic activity by the Fed's 12 regional banks, will be released at 2:00 PM.

Daily Market Update 11/30/10

Mortgage rates inched lower Tuesday as concerns about the risk of default for government debt in smaller European countries helped bond markets and hurt stock markets. In economic news, the Chicago Purchasing Managers Index rose to 62.5, beating forecast. Readings above 50.0 indicate expansion in the manufacturing sector. Consumer Confidence increased to the highest level since June. No other data will be released today.

Daily Market Update 11/29/10

Rates were little changed Monday as mortgage-backed securities markets resumed normal trading following the holiday weekend. No economic data will be released today.

Daily Market Update 11/24/10

Mortgage rates moved higher Wednesday on the release of stronger than expected economic data. Weekly Jobless Claims fell to 407,000, below the consensus forecast of 440,000, and the lowest level since July 2008. Consumer Sentiment rose to 71.6, the highest reading since June. New Home Sales came in under expectations at 283,000 annual units. Durable Goods Orders fell by 3.3%, more than forecast. The Mortgage Bankers Association weekly purchase activity index increased by 14.4% to the highest level since early May. Stocks rallied, hurting bonds and mortgage-backed securities (MBS). Results from today's 7-year Treasury auction will be released at 1:00 PM. The MBS market will be closed tomorrow in observance of Thanksgiving, and will close early on Friday.

Daily Market Update 11/23/10

Rates inched lower Tuesday following an attack by North Korea on a South Korean island, resulting in a flight to safer investments, hurting stocks and helping bonds and mortgage-backed securities. In economic news, third quarter GDP was revised higher to +2.5%, slightly above forecast. Existing Home Sales fell 2.2%, below expectations. Results were weak for this afternoon's 5-year Treasury auction. No other data will be released today.

Daily Market Update 11/22/10

Rates held steady Monday as mortgage-backed securities markets were more stable than last week. No economic data will be released today. Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/19/10

Rates were little changed Friday as mortgage-backed securities (MBS) remained volatile. No key economic data will be released today. Next week the Treasury will auction $99 billion of 2-, 5-, and 7-year notes over three days, beginning Monday. Existing Home Sales figures will come out on Tuesday. Durable Goods Orders and New Home Sales will be released on Wednesday. Also on Wednesday the Fed will release minutes from its last FOMC meeting. Trading volume may be light due to the Thanksgiving holiday, so any movement in MBS markets could be exaggerated.

Daily Market Update 11/18/10

Rates inched higher Thursday as news that a rescue plan for Ireland may be near, causing investors to shift to riskier assets, helping stocks, and hurting bonds and mortgage-backed securities. Weekly Jobless Claims increased to 439,000, close to expectations. Leading Indicators rose 0.5%, matching forecast. The Philadelphia Fed Index, a business outlook survey of manufacturers in Pennsylvania, New Jersey, and Delaware, came in at 22.5, well above the consensus forecast. Stocks moved sharply higher. No other key data will be released today.

Daily Market Update 11/17/10

Mortgage rates were little changed Wednesday in another day of volatile trading. In economic news, the October Consumer Price Index (CPI) rose 0.2%, below the consensus forecast of +0.4%. The more closely-watched "Core" CPI was unchanged, and was a tame 0.6% higher than one year ago. October Housing Starts fell 12%, below expectations, to the lowest level in 18 months. The Mortgage Bankers Association weekly purchase activity index fell by 5%, while the refinancing activity index declined by 17%. Average reported 30-year fixed rates for the prior week rose to 4.46%, not including fees. No other key data will be released today.

Daily Market Update 11/16/10

Rates inched higher Tuesday in extremely volatile trading. Weaker than expected economic data initially helped mortgage-backed securities markets, but unfavorable repricing began occurring by late-morning. In economic news, the October Producer Price Index (PPI) rose 0.4%, below the consensus forecast of 0.8%. Core PPI, which excludes food and energy components, fell 0.6%, and was 1.5% higher than one year ago. October Industrial Production was flat, which was also below expectations. Stocks moved sharply lower. No other data will be released today.

Daily Market Update 11/15/10

Mortgage rates have moved higher by about 1/4% since last Wednesday after the Fed began purchases of Treasury securities under its new "quantitative easing" program. Investors wanted to sell a much larger quantity of Treasurys than the Fed was purchasing, so a rush to sell pushed yields higher. Anticipation of the Fed's program had pushed rates down to the lowest level in decades. There has been strong opposition to the program from other countries and from many US politicians and economists, including some within the Fed, meaning expansion of the plan is unlikely unless the economy falters. It may be difficult for mortgage rates to hold near record lows, and investors have been selling mortgage-backed securities on this outlook. In economic news, October Retail Sales rose 1.2%, beating forecast. The Producer Price Index will be released tomorrow and the Consumer Price Index will come out on Wednesday.

Daily Market Update 11/10/10

Rates stabilized Wednesday following Tuesday's late sell off of mortgage-backed securities. Weekly Jobless Claims fell to 435,000, below the consensus forecast of 450,000. October Import Prices excluding oil rose 0.3%, the same as last month. The September Trade Deficit came in at $44 billion, close to expectations. The Mortgage Bankers Association weekly purchase activity index and refinancing activity index both rose by 6%. Average reported 30-year fixed rates for the week were unchanged at 4.28%, not including fees. Results from today's 30-year Treasury auction will be released at 1:00 PM. The market will be closed tomorrow for Veteran's Day.

Daily Market Update 11/9/10

Mortgage rates moved higher Tuesday as unfavorable repricing took place throughout the day. No economic data came out today, but investors expressed concerns about owning mortgage-backed securities (MBS) at current yields as the Fed moves forward with its "quantitative easing" plan. The dollar has been moving lower and commodities prices higher since last week's Fed announcement. Many analysts expect inflationary pressures to build in the coming months. Import Prices, the Trade Balance, and Jobless Claims will be released tomorrow. The MBS market will be closed Thursday in observance of Veteran's Day.

Daily Market Update 11/8/10

Mortgage rates were little changed Monday in quiet trading. No key economic data will be released today. Results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/5/10

Mortgage rates faced upward pressure Friday following the release of stronger than expected employment data. The economy added 151,000 jobs in October, easily beating forecast. The Unemployment Rate remained at 9.6%. Average hourly earnings, a proxy for wage growth, rose 0.2% from September. Mortgage-backed securities markets have been extremely volatile all week, but overall, rates have improved by about .125% for the week. No other data will be released today.

Daily Market Update 11/4/10

Mortgage rates inched lower Thursday in volatile trading. This morning, mortgage-backed securities (MBS) markets reacted favorably to yesterday's Fed announcement that it would purchase $600 billion of US Treasurys in the coming months. As demand for Treasuries increases, other bond investments, including MBS's, become relatively more attractive to investors. In economic news, weekly Jobless Claims rose to 457,000, above forecast. Third quarter Productivity rose 1.9%, beating expectations. Stocks rallied to their highest levels since September 2008, before the collapse of Lehman Brothers. The closely-watched Non-farm Payrolls report will be released tomorrow at 8:30 AM. No other data will be released today.

Daily Market Update 11/3/10

Mortgage rates eased Wednesday following the outcome of the mid-term elections, with Republicans taking control of the House and gaining seats in the Senate. In economic news, Factory Orders rose 2.1%, beating expectations. The Institute for Supply Management services index reading came in at 54.3, slightly above forecast. The FOMC meeting of the Federal Reserve will wrap up at 2:15 PM. While no rate change is expected, the Fed is likely to announce the details of its new monetary stimulus program. The news may produce a large reaction in the mortgage-backed securities market.

Daily Market Update 11/1/10

Rates were little changed Monday following the release of mixed economic data. Mortgage-backed securities (MBS) markets have been volatile. MBS prices initially rose on news that September Personal Income fell 0.1%, below the consensus forecast of +0.2%. The Core PCE price index rose at a tame 1.2% annual rate, indicating inflation is not a concern in the near term. MSB prices gave up early gains when the Institute for Supply Management manufacturing index rose to 56.9 from 54.4. A small decline had been anticipated. Separately, Construction Spending increased unexpectedly by 0.5%. The next few days may be especially volatile, with the mid-term election results coming out late Tuesday and the FOMC meeting of the Fed on Wednesday. No other data will be released today.

Daily Market Update 10/29/10

Rates inched lower Friday as key economic data came in close to forecast. Preliminary Gross Domestic Product (GDP) figures indicated that the economy grew by 2.0% in the third quarter, matching expectations. Consumer Sentiment fell to 67.7 in October, the lowest reading since last November. The Chicago Purchasing Managers Index increased to 60.6, beating the consensus forecast of 58.0. Stocks were mixed. Mortgage-backed securities markets may be highly volatile next week with mid-term elections on Tuesday, an FOMC meeting of the Fed on Wednesday, and the October Non-farm Payrolls report on Friday. No other data will be released today.

Daily Market Update 10/28/10

Mortgage rates were little changed Thursday. Weekly Jobless Claims fell to 434,000, below the consensus forecast of 455,000, and to the lowest level in three months. Stocks moved higher. Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/27/10

Mortgage rates continued trending higher Wednesday on stronger than expected economic data. September Durable Goods Orders rose 3.3%, above the consensus forecast of +1.8%, led by the volatile transportation component. New Home Sales jumped 6.6% in September, beating expectations. The Mortgage Bankers Association (MBA) weekly purchase activity index rose by 4%, while the refinancing activity index increased by 3%. MBA Chief Economist Jay Brinkmann said interest rates will likely rise from current near-record low levels to 5.1% by the end of 2011. Results of today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/26/10

Mortgage rates inched higher Tuesday. The mortgage-backed securities (MBS) market has been extremely volatile for the past two days and will likely remain so through next week. In addition to several key economic reports due out during the period, beginning with tomorrow's release of Durable Goods Orders and culminating with next Friday's Employment Report for October, mid-term elections will be held on Tuesday, followed by an FOMC meeting of the Fed on Wednesday. With mortgage rates near historic lows, a brief spike in rates may occur over the coming days. In economic news, Consumer Confidence rose to 50.2, a bit more than expected. Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/25/10

Mortgage rates held steady Monday. In economic news, Existing Home Sales rose 10% last month, beating forecast, and providing some evidence that the real estate market may be stabilizing. Analysts credited record-low interest rates for the increase. The weekend G20 meeting contained no news which would reduce the chances of additional Fed stimulus. Stocks moved higher. No other data will be released today.

Daily Market Update 10/21/10

Mortgage rates moved higher Thursday as Treasurys outperformed mortgage-backed securities. In economic news, weekly Jobless Claims fell to 452,000, beating forecast. Leading Indicators rose 0.3%, in line with expectations. Stocks moved higher. Freddie Mac reported average 30-year fixed rates of 4.21% with 0.8 points last week, up from 4.19% the previous week. No other data will be released today.

Daily Market Update 10/20/10

Mortgage rates inched lower Wednesday ahead of this afternoon's "Beige Book" release by the Federal Reserve. Mortgage-backed securities and stocks rallied in anticipation of further monetary stimulus by the Fed. No economic data will be released today.

Daily Market Update 10/19/10

Rates were little changed Tuesday. September Housing Starts rose 0.3% to an annual rate of 610,000, beating the consensus forecast. This was the highest level since April, but the positive news was offset by a 6% decline in Building Permits, a leading indicator, to 539,000. China unexpectedly announced that it will raise interest rates for the first time since 2007. Stocks are sharply lower. No other data will be released today.

Daily Market Update 10/14/10

Rates moved lower Thursday following a rally in mortgage-back securities late Wednesday. This morning, weekly Jobless Claims rose to 462,000, above forecast. The Producer Price Index (PPI) rose 0.4%, more than expected, but the more closely watched "Core" PPI, which excludes volatile food and energy components, rose a tame 0.1%, in line with expectations. Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/13/10

Mortgage rates inched higher Wednesday as a rally in the stock market hurt mortgage-backed securities. This morning, the Mortgage Bankers Association weekly purchase activity index fell 8.5%, while the refinance activity index increased 14.6%. Average reported rates for the past week fell to 4.21%, not including fees. Results of today's 10-year Treasury auction will be released at 1:00 PM. No key economic data will be released today.

Daily Market Update 10/12/10

Mortgage rates were little changed Tuesday as stocks moved lower. Results from today's 3-year Treasury auction will be released at 1:00 PM. The Fed will release minutes from last month's FOMC meeting at 2:00. The September Producer Price Index will come out on Thursday. The Consumer Price Index and Retail Sales for September will be released on Friday.

Daily Market Update 10/11/10

The mortgage-backed securities market is closed today in observance of Columbus Day. Markets will reopen tomorrow at 8:30 AM.

Daily Market Update 10/8/10

Mortgage rates inched lower Friday following the release of weaker than expected employment data. The economy lost 95,000 jobs in September, more than forecast. The private sector actually added 64,000 jobs, but state and local governments continued to shed jobs rapidly. The Unemployment Rate, which is calculated differently than the Non-farm Payrolls report, remained at 9.6%. A broader measure, which also includes the "under-employed", rose to 17.1%, matching the high reached in April. Investors believe today's data will add pressure on the Fed to undertake additional monetary stimulus action. No other data will be released today.

Daily Market Update 10/7/10

Mortgage rates were little changed Thursday ahead of tomorrow's key employment data. This morning, weekly Jobless Claims fell to 445,000, below the consensus forecast of 455,000. Investors are focused on Friday's Non-farm Payrolls report for September. Analysts are expecting the Unemployment Rate to increase to 9.7% from the current 9.6%. This will be the last reading prior to next month's election, and could influence the outcome of some close races. No other data will be released today.

Daily Market Update 10/6/10

Rates inched lower Wednesday following a disappointing estimate for Friday's employment data. Payrolls firm ADP anticipated a net loss of 39,000 private sector jobs in September, well below the consensus forecast. The Mortgage Bankers Association weekly purchase activity index rose by 9%, boosted by a rush of home buyers attempting to obtain new loans prior to an increase in FHA mortgage insurance premiums that went into effect on Monday. The refinancing index fell by 3%. No other data will be released today.

Daily Market Update 10/5/10

Rates held steady Tuesday in volatile trading. Overnight, the Bank of Japan unexpectedly cut interest rates to nearly zero and announced a $418 billion monetary easing program to boost the economy. Bonds and mortgage-backed securities rallied on the news, but later gave up those gains following a strong opening in the stock market. In economic news, the Institute for Supply Management services index rose to 53.2, beating expectations. Readings above 50.0 indicate expansion in the services sector of the economy. No other data will be released today.

Daily Market Update 10/4/10

Mortgage rates were little changed Monday in quiet trading. Pending Home Sales rose 4.3% in August, beating forecast, and providing further indication that the housing market has begun to stabilize following the expiration of home buyer tax credits in April. Meanwhile, Factory Orders declined 0.5%, in line with expectations. No other data will be released today.

Daily Market Update 10/1/10

Rates held steady Friday in quiet trading. Personal Income increased 0.5% in August, better than expected. The Core PCE price index, the Fed's preferred measure of inflation, rose 0.1% from July, and was a tame 1.4% higher than one year ago. The Institute for Supply Management manufacturing index fell to 54.4, a bit below forecast. Readings above 50.0 indicate expansion in the manufacturing sector. Construction Spending rose 0.4%, beating expectations. Federal Reserve of New York President William Dudley stated that further Fed action to stimulate the economy is "likely to be warranted" unless the economy improves quickly. No other data will be released today.

Daily Market Update 9/30/10

Mortgage rates inched higher Thursday on stronger than expected economic data. Weekly Jobless Claims fell to 453,000, below the consensus forecast of 460,000. Final second quarter GDP figures were revised higher to +1.7% from +1.6%. The Chicago PMI national manufacturing index rose to 60.4, well above expectations. Freddie Mac reported average weekly 30-year fixed rates of 4.32% with 0.8 points last week, a new record. No other data will be released today.

Daily Market Update 9/29/10

Rates were little changed Wednesday with no key economic data scheduled for release. The Mortgage Bankers Association weekly purchase activity index rose by 2.4%, while the refinancing activity index fell by 1.6%, despite lower interest rates. The average reported 30-year fixed rate for the week ending 9/27 fell to 4.38%, excluding fees. Results of today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/28/10

Mortgage rates improved slightly Tuesday on weaker than expected economic data. Consumer Confidence fell to a reading of 48.5, the lowest level since February. Separately, the Case-Shiller 20-city seasonally adjusted home price index declined 0.1% in July, in line with expectations. The Wall Street Journal reported that Fed officials are considering a plan to make smaller-scale purchases of Treasury securities with an open-ended time frame. This approach would give the Fed more flexibility to make adjustments. It would also make Fed actions harder to predict, which could increase volatility in mortgage-backed securities markets. Stocks were little changed. Results of today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/24/10

Rates inched higher Friday as gains in stocks hurt mortgage-backed securities. This morning, August Durable Goods Orders fell 1.3%, which was close to forecast. Excluding the volatile transportation component, however, orders rose 2.0%, more than expected. New Home Sales were unchanged in August at an annualized rate of 288,000, close to expectations. Next week, two key manufacturing reports will be released. The Chicago Purchasing Managers Index will come out on Thursday and the Institute for Supply Management manufacturing index on Friday. The Treasury will hold large auctions of 2-, 5-, and 7-year notes over three days beginning Tuesday. No other data will be released today.

Daily Market Update 9/23/10

Mortgage rates were little changed Thursday on mixed economic news. Weekly Jobless Claims rose to 465,000, above the consensus forecast of 450,000. Existing Home Sales for August increased by 7.6% from July's record low, beating expectations, but remaining sluggish. Leading Indicators rose 0.3%. An increase of 0.1% had been expected. No other data will be released today.

Daily Market Update 9/22/10

Mortgage rates held steady Wednesday after moving lower late Tuesday. Yesterday, Fed officials said they are "prepared to provide additional accommodation if needed to support the economic recovery." Investors interpreted this to mean that additional bond purchases by the Fed could take place in the coming months if the recovery falters. This morning, the Federal Housing Finance Agency reported that home prices fell 0.5% in July from June, and 3.3% year-over-year. The Mortgage Bankers Association reported average 30-year fixed rates of 4.44% for the week ending 9/20. No key economic data will be released today.

Daily Market Update 9/21/10

Mortgage rates improved slightly Tuesday as members of the Federal Open Market Committee (FOMC) of the Fed met to discuss monetary policy. A statement will be issued following the meeting at around 2:15 PM et. While no rate changes are expected, investors are waiting to see what other steps, such as the purchase of Treasurys and mortgage-backed securities, the Fed might be considering to stimulate the economy. Recent comments indicate the Fed will only take further stimulative action if the economy deteriorates significantly. This morning, August Housing Starts rose 10.5%, beating expectations. No other data will be released today.

Daily Market Update 9/20/10

Mortgage rates inched higher Monday in quiet trading ahead of tomorrow's Fed meeting. Rising stock prices hurt Treasurys and mortgage-backed securities. No economic data will be released today.

Daily Market Update 9/17/10

Mortgage rates were little changed Friday in quiet trading. The August Consumer Price Index (CPI) increased 0.3%, matching forecast. The more closely watched "Core" CPI, which excludes food and energy components, rose at a lower than expected 0.9% annual rate, easing inflationary concerns in the near term. Consumer Sentiment fell to 66.6 this month, the lowest level since August 2009. A reading of 70.0 had been expected. Next week's big event will be Tuesday's FOMC meeting of the Fed. While no rate changes are expected, investors will be watching closely for clues on the future direction of monetary policy. No other data will be released today.

Daily Market Update 9/16/10

Rates inched higher Thursday on stronger than expected jobs data. Weekly Jobless Claims fell to 450,000, the lowest level in two months. Separately, the Producer Price Index (PPI) for August increased 0.4% from July, which was more than forecast. Core PPI, which excludes volatile food and energy components, rose at a low 1.3% annual rate. The Philadelphia Fed index, a monthly survey of manufacturers in Pennsylvania, New Jersey, and Delaware, came in at -0.7. Readings below zero indicate contraction in the manufacturing sector. Stocks moved lower. No other data will be released today.

Daily Market Update 9/15/10

Rates held steady Wednesday on mixed economic data. Mortgage-backed securities (MBS) initially fell as August Import Prices, excluding oil, rose 0.3%, raising inflationary concerns. MBS prices soon recovered as Industrial Production for August reportedly increased by 0.2%, less than expected. The Empire State regional manufacturing index declined to 4.1 from 7.1, well below forecast. The Mortgage Bankers Association weekly purchase activity index fell by 0.4%, while the refinancing activity index dropped by 10.8%. Average reported 30-year fixed rates for the week ending 9/13 fell to 4.47%, not including fees. No other data will be released today.

Daily Market Update 9/14/10

Mortgage rates inched lower Tuesday despite stronger than expected economic data. August Retail Sales rose 0.4%. An increase of 0.3% had been forecast, but the positive news was partially offset by a downward revision of Retail Sales figures for July. Stocks moved lower. No other data will be released today.

Daily Market Update 9/13/10

Rates were little changed Monday, with no key economic data being released today. Stocks moved higher. The remainder of the week will be busy, beginning with tomorrow's release of Retail Sales figures for August.

Daily Market Update 9/10/10

Mortgage rates rose Friday following yesterday's weak 30-year Treasury auction, hitting their highest levels since August 6. In economic news, July Wholesale Inventories rose by 1.3%, the most in two years, easily beating the consensus forecast of +0.4%. Next week will be busy in terms of key economic data, beginning with the release of Retail Sales figures on Tuesday, followed by Industrial Production on Wednesday, the Producer Price Index on Thursday, and the Consumer Price Index on Friday. Rates are likely to remain volatile throughout the week. No other data will be released today.

Daily Market Update 9/9/10

Rates inched higher Thursday on stronger than expected economic data. Weekly Jobless Claims fell to 451,000, below the consensus forecast of 470,000. The July Trade Deficit was -42.8 billion, beating expectations. Stocks moved higher. Results from today's 30-year Treasury auction will be released at 1:00 PM. Yesterday, FDIC Chairman Shelia Bair called for a new set of "common sense" mortgage lending rules to reduce the risk of government guaranteed loans. "Going forward, the standard as we emerge from this crisis should be very robust income documentation, ability to repay standards, and some significant down payment", Bair said. While we agree in principle with the need for common sense lending standards, we feel the crisis resulted from risk layering. Borrowers with excellent credit histories, stable incomes, and low debt-to-income ratios are likely to make their mortgage payments, even with little or no money down. Likewise, borrowers with large down payments, good cash reserves and excellent credit histories will likely make their payments even with relatively high debt-to-income ratios. The risk level becomes unacceptable when multiple adverse factors are combined. Too much tightening of mortgage credit standards is not helpful.

Daily Market Update 9/8/10

Mortgage rates were little changed Wednesday in light trading. The Mortgage Bankers Association weekly purchase activity index rose 6.3% for the week ending 9/3, while the refinancing activity index fell 3.1%. Results of today's 10-year Treasury auction will be released at 1:00 PM. The Fed's Beige Book, a survey of economic activity by its 12 regional banks, will be released at 2:00.

Daily Market Update 9/7/10

Rates eased Tuesday as weakness in the stock market boosted mortgage-backed securities. Concerns about the stability of European banks produced a flight to safety, lifting global bond markets. Results of today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/2/10

Mortgage rates inched higher Friday as stronger than expected employment data boosted stocks and pushed mortgage-backed securities (MBS) lower. The economy lost 54,000 jobs in August, less than forecast. The June and July employment figures were revised upward as well. The Unemployment Rate rose to 9.6%, in line with expectations. Average Hourly Earnings, a proxy for wage growth, rose 0.3%, beating the consensus forecast of 0.1%. MBS prices recovered somewhat after the Institute for Supply Management services index reading came in lower than expected, at 51.5. Readings above 50.0 indicate expansion in the services sector of the economy. Next week will be relatively light in terms of new data. Investors are likely to focus on the three large Treasury auctions of 3-, 10-, and 30-year securities next Tuesday, Wednesday, and Thursday. Also on Thursday, the Fed's Beige Book will be released, a survey of economic activity by its twelve regional banks. No other key data will be released today.

Daily Market Update 9/2/10

Rates faced upward pressure Thursday on mixed economic data. Weekly Jobless Claims fell to 472,000, close to expectations. Second quarter Productivity was revised lower to -1.8%, a bit below forecast. Pending Home Sales rose unexpectedly by 5.2% in July, indicating the housing market may be stabilizing following the expiration of home buyer tax credits April 30. Factory Orders rose by 0.1%. An increase of 0.3% had been expected. Investors will be closely watching tomorrow's Employment Report for August which is scheduled for release at 8:30 AM.

Daily Market Update 9/1/10

Rates held steady early Wednesday, although mortgage-backed securities came under pressure following the release of stronger than expected economic data. The Institute for Supply Management manufacturing index rose to 56.3 in August from 55.5 in July. A reading of 53.0 had been forecast. Readings above 50.0 indicate expansion in the manufacturing sector. Construction Spending declined by 1.0%, close to expectations. The Mortgage Bankers Association weekly purchase activity index rose 2%, while the refinancing activity index rose 3% to the highest level since May 2009. Average reported rates for 30-year fixed mortgages fell to 4.43% last week, excluding fees. No other data will be released today.

Daily Market Update 8/31/10

Mortgage rates inched lower Tuesday on mixed economic data. The Chicago Purchasing Managers Index declined more than expected to 56.7 from last month's reading of 62.3. Readings above 50.0 indicate expansion in the manufacturing sector of the economy. Meanwhile, Consumer Confidence rose to 53.5, beating forecast. Minutes from the last FOMC meeting indicate the Fed considered resuming purchases of mortgage-backed securities in an effort to push mortgage rates even lower. No other data will be released today.

Daily Market Update 8/30/10

Rates were little changed Monday as mortgage-backed securities regained most of their losses from Friday. In economic news, July Personal Income rose 0.2%, a bit less than forecast. The Core PCE price index, the Fed's preferred measure of inflation, rose at a tame 1.4% annual rate, indicating inflation is still not a concern in the near term. Stocks moved lower. No other economic data will be released today.

Daily Market Update 8/27/10

Mortgage rates held steady early Friday, but faced upward pressure following Fed Chairman Ben Bernanke's comments to central bankers from around the world at today's annual monetary symposium in Jackson Hole, Wyoming. Bernanke said the Fed "will do all that it can" to ensure that the economic recovery continues. In economic news, second quarter Gross Domestic Product (GDP) was revised down to +1.6% from +2.4%, but this was above the consensus forecast of +1.4%. Consumer Sentiment came in at 68.9, a bit below expectations. St. Louis Fed President James Bullard stated that he believes housing market activity and home prices will remain roughly flat for the time being. He also suggested that the Fed will probably not resume purchases of mortgage-backed securities (MBS). Next week will be extremely busy in terms of new economic data, which may cause volatility in the MBS market. The Chicago Purchasing Managers Index and minutes from last month's Fed meeting will be released on Tuesday, the Institute for Supply Management manufacturing index comes out on Wednesday, and the closely-watched Non-farm Payrolls report for August will be released on Friday.

Daily Market Update 8/26/10

Rates held steady Thursday as weekly Jobless Claims fell to 473,000, below the consensus forecast of 485,000. Stocks inched higher. Freddie Mac reported weekly average 30-year fixed rates of 4.36% with 0.7 "points", the lowest on record. Results from today's 7-year Treasury auction will come out at 1:00 PM. No other key economic data will be released today.

Daily Market Update 8/25/10

Mortgage rates were little changed Wednesday in spite of weaker than expected economic data. July Durable Goods Orders rose 0.3%, far below the consensus forecast of +2.5%. Meanwhile, the Commerce Department reported New Home Sales fell in July by 12.4% to an annual rate of 276,000 units, the lowest level since 1963. The Mortgage Bankers Association weekly purchase activity index rose 0.6%, while the refinancing activity index increased 5.7%. Average reported 30-year fixed rates fell to 4.55% (excluding fees), a new record low. Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/24/10

Mortgage rates inched lower as weakness in the stock market lifted mortgage-backed securities and Treasurys. Existing Home Sales tumbled 27.2% in July to a 15-year low. A decrease of 12% had been forecast. Stocks moved sharply lower. Results of today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/23/10

Mortgage rates were little changed Monday as stock prices moved modestly higher. No economic data will be released today.

Daily Market Update 8/20/10

Mortgage rates inched higher Friday in light trading, as mortgage-backed securities prices finished the week very close to where they started. No economic data was released today. Next week, Existing Home Sales will be released on Tuesday, New Home Sales and Durable Goods Orders on Wednesday, and revisions to second quarter Gross Domestic Product (GDP) and Consumer Sentiment will come out on Friday.

Daily Market Update 8/19/10

Mortgage rates dipped Thursday on negative economic data, recapturing territory lost earlier this week. Weekly Jobless Claims rose unexpectedly to 500,000, the highest level of the year. The Philadelphia Federal Reserve manufacturing activity index came in at -7.7, compared to a consensus forecast of +7.5. Readings below zero indicate contraction in the manufacturing sector of the economy. Leading Indicators rose 0.1%, in line with expectations. Stocks moved sharply lower. No other data will be released today.

Daily Market Update 8/18/10

Mortgage rates were little changed Wednesday in quiet trading. The Mortgage Bankers Association weekly purchase activity index fell by 3%, while the refinancing activity index rose by 17% to the highest level in 15 months. Average reported rates for the week rose to 4.60% from 4.57%. Bankrate reported that average closing costs rose 36.6% over the past year. Increased government regulation and reduced competition are the likely culprits. Yesterday, during opening statements at the housing-finance conference to discuss the future of Fannie Mae and Freddie Mac, Treasury Secretary Timothy Geithner voiced support for a continued government role in the guarantee of home mortgages. The Obama Administration plans to unveil a detailed proposal in January 2011. No economic data will be released today.

Daily Market Update 8/17/10

Rates inched higher Tuesday on mixed economic news. The Producer Price Index (PPI) rose 0.2% in July, matching expectations, but Core PPI, which excludes volatile food and energy components, rose more than forecast. July Housing Starts increased by 2%, while Building Permits, a leading indicator, fell by 3% to the lowest level since May 2009. Industrial Production jumped 1.0% in July, doubling the consensus forecast of +0.5%. Stocks moved higher. The Treasury begins a conference today to discuss the future of Fannie Mae and Freddie Mac. The two agencies have cost taxpayers nearly $150 billion since having been taken over by the government in 2008. Options range from full nationalization to full privatization, with a host of alternatives in between. No decision is expected until early next year.

Daily Market Update 8/16/10

Rates eased Monday as global bond markets rallied on concerns over a weakening recovery. The Empire State regional manufacturing index came in at 7.1, below consensus forecast. Orders and sales declined for the first time in more than a year. Stocks moved lower. No other economic data will be released today.

Daily Market Update 8/13/10

Mortgage rates retreated from record lows following a sharp sell off of mortgage-backed securities (MBS) late Thursday. Analysts attributed the increase in MBS yields to high refinancing demand. Friday's economic data came in close to expectations. July Retail Sales rose 0.4%. The Consumer Price Index (CPI) rose 0.3%, while Core CPI, which excludes volatile food and energy components, rose at a slim 0.9% annual rate. Consumer Sentiment came in at 69.6, slightly above forecast. Next week will be relatively light in terms of new economic data. The Producer Price Index and Industrial Production will be released on Tuesday.

Daily Market Update 8/12/10

Mortgage rates remained near record lows Thursday in volatile trading. This morning, weekly Jobless Claims rose unexpectedly to 484,000, providing further evidence of a slowing economy. Import Prices, excluding oil, fell 0.3%. Stocks moved lower. Freddie Mac reported record-low average 30-year fixed rates over the past week of 4.44% plus 0.7 points. Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/11/10

Rates moved lower Wednesday following yesterday's Fed announcement and weaker than expected economic data in Asia. Stocks fell sharply. Yesterday, the Fed announced plans to resume purchasing US Treasurys in an effort to push rates lower and provide increased liquidity into the economy. In economic news, the June Trade Balance was -$49.9 billion, much larger than forecast. The Mortgage Bankers Association weekly purchase activity and refinancing activity indices both rose by 1%. Refinancing accounted for 78% of all activity. Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/10/10

Rates were little changed Tuesday ahead of today's FOMC meeting of the Federal Reserve. In economic news, second quarter Productivity fell unexpectedly by 0.9%, the first drop since late 2008. Labor costs increased at a scant 0.2% annual rate. Stocks moved sharply lower. Results from today's 3-year Treasury auction will be released at 1:00 PM. The Fed announcement will come out at 2:15 PM. No rate changes are expected, but investors are divided about whether the Fed will reveal any significant changes in monetary policy, such as purchasing additional mortgage-backed securities.

Daily Market Update 8/9/10

Mortgage rates were unchanged in light trading Monday as investors await tomorrow's FOMC meeting. No economic data will be released today.

Daily Market Update 8/6/10

Rates inched lower Friday following disappointing employment data. The economy lost 131,000 jobs in July, more than expected. The Unemployment Rate, which is calculated differently than the Payrolls report, remained at 9.5%. Average Hourly Earnings, a proxy for wage growth, rose at a 1.8% annual rate. Yesterday, Freddie Mac reported average 30-year fixed rates for the previous week of 4.49% with 0.7 points, the lowest level on record. The big story next week will be Tuesday's Federal Open Market Committee (FOMC) meeting of the Federal Reserve. While no rate change is expected, the Fed has been considering other measures to stimulate the economy, including the resumption of its mortgage-backed securities purchase program. Investors will be watching closely. Separately, the Treasury will hold large auctions of 3-, 10-, and 30-year securities over three days beginning Tuesday. The Consumer Price Index and July Retail Sales will come out Friday. No other data will be released today.

Daily Market Update 8/5/10

Rates were little changed Thursday as mortgage-backed securities recovered from yesterday's losses on weak labor market data. Weekly Jobless Claims rose to 479,000, a 3-month high, but unusual seasonal adjustments related to the auto sector may have skewed the results. The European Central Bank (ECB) left rates unchanged, as expected. Investors will be closely watching tomorrow's Non-farm Payrolls report for July. No other data will be released today.

Daily Market Update 8/4/10

Rates held steady Wednesday as today's economic data came in close to expectations. This morning, the ADP estimate for Friday's Employment Report was for a net gain of 42,000 private sector jobs. The Institute for Supply Management services index rose to 54.3 from 53.8 last month. Readings above 50.0 indicate expansion in the services sector of the economy. The Mortgage Bankers Association weekly purchase activity index rose 2% as average reported 30-year fixed rates fell 9 basis points to 4.60 last week. Stocks moved modestly higher. No other data will be released today.

Daily Market Update 8/3/10

Rates were little changed Tuesday. In economic news, Pending Home Sales fell 2.6% in June, less than expected. Factory Orders declined for the second straight month by 1.2% against a consensus forecast of -0.5%. June Personal Income and Consumer Spending were flat. Today's Wall Street Journal reported that the Fed is considering a change in policy which would involve purchasing more mortgage-backed securities or Treasury bonds to push yields lower. No other data will be released today.

Daily Market Update 8/2/10

Mortgage rates rose slightly Monday as stocks rallied on stronger than expected economic news. The July ISM manufacturing index fell less than forecast to 55.5 from 56.2 in June. Readings above 50.0 indicate expansion in the manufacturing sector. Construction Spending rose 0.1%. A decrease of 1.0% had been expected. No other data will be released today.

Daily Market Update 7/30/10

Mortgage rates were little changed Friday as mortgage-backed securities gave up early gains sparked by weaker than expected economic data. Second quarter Gross Domestic Product (GDP) increased at a 2.4% annual rate, below the consensus forecast of 2.5%, and well below first quarter GDP growth of 3.7%. The Chicago PMI manufacturing index rose to 62.3, beating expectations. July Consumer Sentiment fell to 67.8, the lowest level since November. Stocks moved lower. The big economic news next week will be the July Non-farm Payrolls report due out Friday. No other data will be released today.

Daily Market Update 7/29/10

Mortgage rates dipped Thursday reflecting a rally in mortgage-backed securities (MBS) late Wednesday following a successful 5-year Treasury auction. Weekly Jobless Claims fell to 457,000, slightly below forecast. Results from today's 7-year Treasury auction will announced at 1:00 PM. The initial estimate for second quarter GDP will be released tomorrow at 8:30 AM. Investors will be watching the report closely, and MBS markets may be volatile in the meantime.

Daily Market Update 7/28/10

Rates held steady Wednesday as investors showed little reaction to weaker than expected economic data. June Durable Goods Orders declined 1.0%, below the consensus forecast for an increase of 1.0%. Excluding the volatile transportation component, orders fell 0.6%. Yesterday, the Obama Administration announced that it will provide a "comprehensive housing finance reform proposal" by January 2011 to address the future of Fannie Mae and Freddie Mac. The January release date pushes the debate forward until after the November midterm elections. Results from today's 5-year Treasury auction will be released at 1:00 PM. The Federal Reserve's Beige Book, a survey of economic activity by the Fed's 12 regional banks, will come out at 2:00 PM. The Mortgage Bankers Association weekly purchase activity index rose by 2%, while the refinancing activity index fell by 6%. Average reported rates for 30-year fixed mortgages rose to 4.69%. No other data will be released today.

Daily Market Update

Mortgage rates were little changed Tuesday as mortgage-backed securities outperformed Treasurys ahead of this afternoon's 2-year note auction. Consumer Confidence fell a bit more than expected this month, to 50.4, from 52.9 in June. No other data will be released today.

Daily Market Update 7/26/10

Mortgage rates inched higher Monday on stronger than expected economic data. New Home Sales rose 24% in June to an annualized rate of 330,000 units, 20,000 above forecast. Stocks moved higher. Key economic reports due out this week include Durable Goods Orders on Wednesday and advanced second quarter GDP and the Chicago Purchasing Managers Index on Friday. The Treasury will also be holding 2-, 5-, and 7-year note auctions over three days beginning Tuesday. No other data will be released today.

Daily Market Update 7/22/10

Mortgage rates inched lower Thursday reflecting improvement in mortgage-backed securities (MBS) markets late Wednesday. Stock prices rallied this morning on higher earnings forecasts, applying some upward pressure on rates. In economic news, Existing Home Sales fell 5.1% in June, less than expected. Leading Indicators declined 0.2%, the second drop in the past three months. Weekly Jobless Claims rose to 464,000, above the consensus forecast of 450,000. Fed Chairman Bernanke will wrap up his second day of testimony before Congress this afternoon.

Daily Market Update 7/21/10

Mortgage rates moved slightly higher Wednesday reflecting a drop in mortgage-backed securities prices late Tuesday. The Mortgage Bankers Association weekly purchase activity index rose 3%, the first increase in five weeks. The refinance activity index rose 9%, as average 30-year fixed rates fell to 4.59%, the lowest level on record. The Dodd-Frank financial regulatory reform bill will be signed today by President Obama. The far-reaching 2300 page bill will be phased in over time, and many aspects of the legislation have yet to be decided. This afternoon, Fed Chairman Ben Bernanke will deliver his semi-annual testimony to Congress at 2:00 PM. No economic data will be released today.

Daily Market Update 7/20/10

Rates held steady Tuesday as mortgage-backed securities recovered from yesterday's late sell-off. This morning, the Commerce Department reported a 5% drop in June Housing Starts to an annual rate of 549,000 units, below the consensus forecast of 575,000. Meanwhile, Building Permits, a leading indicator, rose 2%. Stocks moved sharply lower. No other data will be released today.

Daily Market Update 7/19/10

Rates remained near 50-year lows on Monday. This will be a quiet week in terms of economic news with the exception of Thursday's release of Leading Indicators, Existing Home Sales, and weekly Jobless Claims. No data will be released today.

Daily Market Update 7/14/10

Mortgage rates inched lower Wednesday on weaker than expected economic data. June Retail Sales fell 0.5%, below forecast. The Mortgage Bankers Association weekly purchase activity index declined 3.1% to the lowest level in 13 years. The refinancing activity index fell 2.9% in spite of near-record low interest rates. The average reported rate for 30-year fixed mortgages was 4.69% last week. The results from today's 30-year Treasury auction will be released at 1:00 PM. Minutes from last month's FOMC meeting will be released at 2:00 PM. The Dodd-Frank financial regulatory reform bill, which has already passed the House, appears closer to passage in the Senate with the support of three Republicans. Full ramifications of the enormously complicated, often ambiguous, 2,300 page bill may take years to known, but will likely benefit the biggest financial institutions, while raising borrowing costs to consumers.

Daily Market Update 7/13/10

Rates held steady Tuesday morning in light trading. In economic news, the Commerce Department announced an unexpected increase in the Trade Deficit for May to $42.3 billion. Stocks moved higher on strong second quarter corporate earnings reports. Results from today's 10-year Treasury auction will be released at 1:00 PM. No other data will be released today.

Daily Market Update 7/12/10

Rates were little changed Monday in quiet trading ahead of a full week of economic data and Treasury auctions. There will be no key data released until Wednesday, but the results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 7/9/10

Mortgage rates were little changed Friday in quiet trading, as mortgage-backed securities outperformed Treasurys. Rates remain at levels not seen since the 1950's. Stocks moved modestly higher. No economic data will be released today. Several key economic reports are due out next week, including Retail Sales on Wednesday, the Producer Price Index and Industrial Production on Thursday, and the Consumer Price Index on Friday. Also, the Treasury will be holding large auctions of 3-, 10-, and 30-year securities over three days beginning Monday. Rates may be more volatile in the week ahead.

Daily Market Update 7/8/10

Rates inched higher Thursday as stock prices continued to rally on better than expected economic news. Weekly Jobless Claims fell to 454,000, below the consensus forecast of 460,000. The IMF raised its global economic growth forecast for 2010 to 4.6% from 4.2%. As expected, the European Central Bank (ECB) made no change in rates. No other economic data will be released today.

Daily Market Update 7/7/10

Mortgage rates reached new record lows Wednesday morning in quiet trading. The Mortgage Bankers Association weekly purchase activity index fell 2.0%, while the refinancing activity index increased 9.2%. No economic data will be released today.

Daily Market Update 6/29/10

Rates held at historic low levels Tuesday following weaker than expected economic data. Consumer Confidence fell to 52.9, far below the consensus forecast of 62.0. Stocks moved sharply lower. No other data will be released today.

Daily Market Update 6/28/10

Mortgage rates inched lower Monday, reaching new record lows. Personal Income increased 0.4% in May, close to expectations. The Core PCE price index, the Fed's preferred inflation indicator, rose at a tame 1.3% annual rate, below the Fed's target range of 1.5% to 2.0%. No other data will be released today.

Daily Market Update 6/25/10

Rates were little changed Friday in volatile trading as investors tried to analyze the impact of the financial regulatory bill that was reconciled in committee last night. The final bill is expected to pass the full House and Senate and be signed into law next week. Also of note, the Jobless Bill containing an extension of the homebuyer tax credit "close-by" deadline to September 30 failed to pass yet again. In economic news, final first quarter GDP was revised lower to +2.7% from +3.0%. Consumer Sentiment rose to 76.0, slightly above consensus forecast. Next week will be busy, with the release of the Chicago Purchasing Managers Index on Wednesday, the Institute for Supply Management manufacturing index on Thursday, and the closely-watched Employment Report for June on Friday. No other data will be released today.

Daily Market Update 6/23/10

Rates drifted lower Wednesday ahead to this afternoon's Fed announcement. The Federal Open Market Committee (FOMC) is meeting today to discuss monetary policy. No rate changes are expected. In economic news, New Home Sales fell a record 33% in May to 300,000 annual units, far below forecast. Expiring homebuyer tax credits were blamed for the steep decline. The Mortgage Bankers Association weekly purchase activity index fell 1%, while the refinancing activity index decreased by 7% in spite of the year's lowest rates. Average reported rates for the week fell to 4.75% for 30-year fixed mortgages.

Daily Market Update 6/22/10

Mortgage rates eased to their lowest levels of the year Tuesday on weaker than expected economic data. The National Association of Realtors reported Existing Home Sales fell 2.2% in May. A gain of 5.5% had been forecast. Results from today's 2-year Treasury auction will come out at 1:00 PM. Investors will now likely turn their focus to tomorrow's FOMC meeting of the Federal Reserve. No rate changes are expected, but the statement issued following the meeting may offer clues about the direction of future monetary policy.

Daily Market Update 6/21/10

Rates inched higher Monday following China's announcement that it will allow gradual adjustments to the value of its currency, the yuan. A stronger yuan is expected to be positive for global economic growth, and stock markets rallied on the news, hurting Treasurys and mortgage-backed securities. No economic data will be released today.

Daily Market Update 6/18/10

Mortgage rates remained near record lows Friday in quiet trading. No key economic data will be released today. Next week will bring a slew of economic news, and rates may be volatile. Existing Home Sales come out on Tuesday, New Home Sales and the Fed's FOMC meeting on Wednesday, Durable Goods Orders on Thursday, and final first quarter GDP figures on Friday. The Treasury will hold large auctions of 2-, 5-, and 7-year notes beginning Tuesday.

Daily Market Update 6/17/10

Rates inched lower Thursday on tame inflation and weaker than expected economic data. The Consumer Price Index (CPI) fell 0.2% in May. Core CPI, excluding food and energy components, rose 0.1%. Weekly Jobless Claims rose to 472,000, well above forecast. The Philadelphia Fed index came in at 8.0, a 10-month low. Leading Indicators rose 0.4%, in line with expectations. Stocks were mostly lower. No other data will be released today.

Daily Market Update 6/16/10

Mortgage rates held steady Wednesday on mixed economic data. The Producer Price Index (PPI) fell 0.3% in May. Core PPI, which excludes food and energy components, rose 0.2%, but was a tame 1.3% higher than one year ago. May Housing Starts fell 10% to 593,000, below the consensus forecast of 655,000. Building Permits, a leading indicator, declined 6%. Industrial Production rose 1.2% in May, which was higher than expected. No other data will be released today.

Daily Market Update 6/15/10

Rates were little changed Tuesday as mortgage-backed securities held steady in spite of a stock market rally. In economic news, the Empire State index came in close to forecast. May Import Prices, excluding oil, rose 0.5%. No other data will be released today.

Daily Market Update 6/14/10

Rates faced upward pressure Monday as mortgage-backed securities (MBS) relinquished Friday's gains. Stock prices rose as investors shifted funds from Treasuries and MBS's to riskier assets on positive economic news from Europe. No key economic data will be released today.

Daily Market Update 6/11/10

Mortgage rates were little changed Friday as mortgage-backed securities bounced back from a late sell off yesterday afternoon. Retail Sales fell unexpectedly by 1.2% in May, well below the consensus forecast for an increase of 0.2%. Stocks moved sharply lower on the report. Consumer Sentiment rose to 75.5 in May, the highest reading since January 2008. Key data due out next week include the Producer Price Index and Industrial Production on Wednesday and the Consumer Price Index on Thursday. No other data will be released today.

Daily Market Update 6/10/10

Mortgage rates remained mostly stable Thursday, although a rally in stock prices pressured mortgage-backed securities markets. Strong economic data in Asia and a rise in the value of the euro helped global stocks. Weekly Jobless Claims came in at 456,000, slightly higher than expected. The results from today's 30-year Treasury auction will come out at 1:00 PM.

Daily Market Update 6/9/10

Rates held steady Wednesday ahead of testimony from Fed Chairman Bernanke, a 10-year Treasury auction, and release of the Beige Book, a survey of economic activity by the Fed's 12 regional banks. The Mortgage Bankers Association weekly purchase activity index fell 5.7% to the lowest level since February 1997. The index is down 35% from 4 weeks ago following the expiration of homebuyer tax credits. Refinance activity fell 14.3%, although mortgage rates remain near record lows.

Daily Market Update 6/8/10

Mortgage rates were little changed in quiet trading ahead of today's 3-year Treasury auction. Results will come out at 1:00 PM. In an interview last night, Fed Chairman Ben Bernanke expressed confidence that European leaders were taking appropriate steps and would be able to handle the economic crisis there. He also warned that the Fed would eventually have to begin raising interest rates before the economy returns to full employment. No economic data will be released today.

Daily Market Update 6/7/10

Mortgage rates remained near record lows as stock prices continued to slide following last Friday's disappointing Employment Report. Large Treasury auctions, beginning tomorrow, are likely to have the greatest impact on rates over the next few days. The only key economic data due out this week comes Friday, with the release of Retail Sales figures for May.

Daily Market Update 6/4/10

Rates eased Friday following the May Non-farm Payrolls report. The economy added 431,000 jobs last month, although 411,000 jobs came from the hiring of temporary government census workers. The data fell short of expectations, hurting stocks and benefiting bonds and mortgage-backed securities. Key economic reports due out next week include Industrial Production on Monday and Retail Sales on Friday. The Treasury will auction $70 billion of 3-, 10-, and 30-year securities beginning Tuesday. No other data will be released today.

Daily Market Update 6/3/10

Mortgage rates inched higher Thursday ahead of tomorrow's Employment Report. In economic news, weekly Jobless Claims came in at 454,000, close to expectations. Factory Orders rose 1.2%, a bit less than forecast. May Productivity increased 2.8%, less than expected. Analysts are forecasting a strong Employment Report for May, to be released Friday at 8:30 AM. A net increase of over 500,000 jobs is expected, mostly due to the hiring of census workers. Investors will be watching the data closely and mortgage-backed securities markets may be volatile.

Daily Market Update 6/2/10

Rates were little changed Wednesday in quiet trading. April Pending Home Sales rose 6.0% as buyers rushed to take advantage of expiring tax credits. The Mortgage Bankers Association weekly purchase activity index fell 4%, to the lowest level since April 1997. No other data will be released today.

Daily Market Update 6/1/10

Rates held steady Tuesday morning as positive economic news helped offset a large drop in BP shares. The Institute for Supply Management manufacturing index reading fell to 59.7, a bit less than expected. Readings above 50.0 indicate expansion in the manufacturing sector of the economy, which has now grown for 10 consecutive months. Construction Spending surged 2.7%. An increase of 0.1% had been forecast. No other data will be released today.

Daily Market Update 5/28/10

Rates were little changed Friday as mortgage-backed securities (MBS) markets have reversed some of yesterday's losses. In economic news, the Core PCE price index, the Fed's preferred measure of inflation, increased at a low 1.2% annual rate. April Personal Income rose 0.4%, while spending was flat. May Consumer Sentiment came in at 73.6, beating expectations. The Chicago Purchasing Managers manufacturing index fell to 59.7, below forecast. The most important data due out next week will be Friday's Employment Report for May. MBS markets are likely to continue being driven by developments in the European debt crisis.

Daily Market Update 5/27/10

Rates inched higher Thursday following a rally in stocks. Today's economic data had little impact. Weekly Jobless Claims declined to 460,000, above forecast. First quarter Gross Domestic Product (GDP) was revised down to 3.0% from 3.2%. There will be a 7-year Treasury auction at 1:00 PM. No other data will be released today.

Daily Market Update 5/26/10

Rates remained near historic low levels on Wednesday, although stock market gains pressured mortgage-backed securities. April Durable Goods Orders rose 2.9%, above the consensus forecast of 1.5%. However, excluding volatile aircraft orders, the data fell short of expectations, declining by 1.0%. New Home Sales increased a solid 14.8% in April as buyers rushed to take advantage of expiring homebuyer tax credits. The Mortgage Bankers Association weekly purchase activity index fell 3%, to the lowest level since April 1997, while refinancing activity rose by 17%. There will be a 5-year Treasury auction at 1:00 PM.

Daily Market Update 5/25/10

Rates held steady Tuesday as increased tension between North and South Korea hurt stocks and helped bonds and mortgage-backed securities. Consumer Confidence rose last month to 63.3, the highest reading since March 2008, beating the consensus forecast. There will be a 2-year Treasury auction at 1:00 PM. No other key economic data will be released today.

Daily Market Update 5/24/10

Rates were little changed Monday. Stocks moved lower as investors remained focused on European debt concerns. In economic news, April Existing Homes Sales rose by a solid 7.6% as home buyers scrambled to take advantage of expiring tax credits. No other data will be released toady.

Daily Market Update 5/21/10

Mortgage rates were little changed Friday, maintaining their lowest levels of the year. Concerns about the economic situation in Europe continue to drive the market. Stocks moved sharply lower in early trading but have since recovered most of their losses. Next week, April Durable Goods Orders will be released on Wednesday and the Chicago Purchasing Managers Index on Friday. There will be large Treasury auctions of 2-, 5-, and 7-year notes beginning Tuesday. No other data will be released today.

Daily Market Update 5/20/10

Rates inched lower Thursday as global investors shifted funds away from stocks, lifting mortgage-backed securities. Weekly Jobless Claims rose to 471,000, well above the consensus forecast of 440,000. Leading Indicators fell 0.1% in April, the first decline in over a year. The Philadelphia Fed Index came in slightly below expectations. Stocks fell sharply. No other data will be released today.

Daily Market Update 5/19/10

Mortgage rates remained near record low levels Wednesday as consumer inflation came in close to expectations. The Consumer Price Index (CPI) declined -0.1% and was 2.2% higher than one year ago. Core CPI, which excludes volatile food and energy components, rose at a tame 0.9% annual rate. The Mortgage Bankers Association weekly purchase activity index fell 27%, to the lowest level since 1997, reflecting the recent expiration of homebuyer tax incentives. Stocks fell sharply. Minutes from last month's Federal Open Market Committee of the Federal Reserve will be released at 2:00 PM.

Daily Market Update 5/18/10

30-year fixed rates remained below 5% Tuesday on tame inflation and mixed housing data. The April Producer Price Index (PPI) declined unexpectedly by -0.1%. Core PPI, which excludes food and energy components, rose at a low 1.0% annual rate. April Housing Starts increased 5.8% to an 18 month high, while Building Permits, a leading indicator, fell -11.5%. Stocks moved higher. No other data will be released today.

Daily Market Update 5/17/10

Rates inched lower Monday. The Fannie Mae 30-year fixed net required yield is now at the lowest level of the year. In economic news, the Empire State regional manufacturing index declined to 19.1. Although well below forecast, readings above zero indicate expansion in the manufacturing sector. Stocks and oil prices moved lower. No other data will be released today.

Daily Market Update 5/14/10

Rates inched lower Friday as bonds and mortgage-backed securities benefited from a sharp decline in global stock markets. Investors remain worried about the European debt crisis and the possible demise of the Euro, which would hamper future economic growth. In other news, April Retail Sales rose 0.4%, above expectations. Industrial Production increased 0.8%, in line with forecast. Consumer Sentiment rose a bit less than expected. Major economic data due out next week include Tuesday's release of the Producer Price Index (PPI) and the Consumer Price Index (CPI) on Wednesday.

Daily Market Update 5/13/10

Mortgage rates remained below 5% Thursday. Freddie Mac reported that 30-year fixed rates averaged 4.93% with 0.7 points over the past week, a 5-month low. Weekly Jobless Claims fell to 444,000, close to the consensus forecast of 440,000. Retail Sales and Industrial Production data will be released tomorrow.

Daily Market Update 5/12/10

Rates were little changed Wednesday in quiet trading. In economic news, the March Trade Deficit rose to $40.4 billion to the highest level in over a year. The Mortgage Bankers Association weekly purchase activity index fell 10% as homebuyer tax credits expired April 30. There will be a 10-year Treasury auction at 1:00 PM.

Daily Market Update 5/11/10

Mortgage rates were steady, to slightly lower Tuesday, as global stock markets retreated from yesterday's strong gains. Investors are awaiting further details on the $1 trillion European Union bailout plan. No economic data will be released today, but there will be a 3-year Treasury auction at 1:00 PM.

Daily Market Update 5/10/10

Mortgage rates were relatively stable Monday considering the surge in stock prices. Rates benefited last week when stocks fell sharply as investors moved funds from stocks into Treasuries and mortgage-backed securities. Today stocks rallied after the European Union announced plans to make $1 trillion available to support Greece and other EU members. In other news, Fannie Mae asked the government for another $8.4 billion after reporting a $13.1 billion loss in the first quarter. Last week Freddie Mac requested $10.6 billion. The two mortgage giants have now received $140 billion in government assistance. No economic data will be released today.

Daily Market Update 5/7/10

Mortgage rates inched lower Friday in extremely volatile trading following stronger than expected jobs data and continued turmoil in stocks. The economy added 290,000 jobs in April, about 100,000 more than forecast. Meanwhile, the Unemployment Rate, which is calculated on a separate set of data, increased to 9.9% as the labor force grew by 805,000 workers in April. Average Hourly Earnings, a proxy for wage growth, increased at a modest 1.6% annual rate. In other news, global stock markets continued their slide on concerns over the European debt crisis. The Dow Jones Industrial Average has now given up all gains for 2010. Next week will be relatively quiet in terms of new economic data, with the exception of Friday's release of April Retail Sales figures and Industrial Production. The Treasury will hold large auctions of 3-, 10-, and 30-year securities beginning Tuesday.

Daily Market Update 5/6/10

Rates were little changed Thursday as weekly Jobless Claims came in close to forecast. First quarter Productivity rose at a 3.6% annual rate, better than expected. Stock prices continued to slump on concerns over Greece and other members of the European Union. The closely-watched Employment Report for April will be released tomorrow at 8:30 AM.

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Daily Market Update 5/5/10

Mortgage rates dipped Wednesday as concerns about riots in Greece and debt problems for other European countries caused a large decline in global stock markets. Investors shifted funds to safer assets, which helped mortgage-backed securities. Today's economic data had little impact on markets. March Pending Home Sales rose 5.3% from February, aided by homebuyer tax credits. The index is a leading indicator for the housing sector. Contracts had to be signed by April 30 to qualify for the credit, so May activity will be watched closely by analysts. The Institute for Supply Management services index was unchanged for April. A small increase had been expected. No other data will be released today.

Daily Market Update 5/3/10

Rates held steady Monday as mortgage-backed securities gave up gains that occurred late Friday. In economic news, March Personal Income increased 0.3%, matching forecast. Construction Spending rose 0.2%, better than expected. The Institute for Supply Management manufacturing index reading came in at 60.4, close to the consensus forecast. Readings above 50.0 indicate expansion. Stocks moved higher. No other data will be released today.

Daily Market Update 4/30/10

Rates were little changed Friday as new economic data came in close to expectations. Preliminary first quarter GDP figures indicated the economy grew at a 3.2% annual rate, a bit less than forecast. The Chicago Purchasing Managers Index rose to 63.8 from 58.8 in March. Readings above 50.0 indicate expansion in the manufacturing sector. Consumer Sentiment came in a bit higher than expected. Major data due out next week include Monday's release of the Institute for Supply Management manufacturing index and Friday's Employment Report for April. Have a great Derby weekend!

Daily Market Update 4/29/10

Mortgage rates were little changed Thursday following yesterday's FOMC meeting. The Fed vowed to maintain low rates for an "extended period" and made no mention of the timing of mortgage-backed securities sales. In economic news, weekly Jobless Claims came in at 448,000, close to expectations. Results of today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 4/28/10

Rates rose slightly Wednesday as concerns over the Greek debt crisis eased. While no economic data will be released today, the big news will be the Fed statement following its two-day FOMC meeting, expected at 2:15 PM et. No rate change is expected, but investors will be watching closely for clues about future Fed moves to tighten monetary policy or sell mortgage-backed securities. Results of today's Treasury auction of 5-year notes will be announced at 1:00 PM.

Daily Market Update 4/27/10

Rates inched lower Wednesday on news that Greece's credit rating was cut to junk status by Standard & Poor's. Stocks fell sharply, lifting mortgage-backed securities markets. Consumer Confidence rose last month to 57.9, far above forecast, marking the highest level since the collapse of Lehman Brothers in September 2008. This afternoon's Treasury auction of 2-year notes drew average bidding. No other data will be released today.

Daily Market Update 4/26/10

Rates were little changed Monday in the absence of any key economic data. The remainder of the week may be more volatile with large Treasury auctions scheduled for Tuesday, Wednesday, and Thursday, the FOMC meeting of the Fed on Wednesday, and first quarter GDP on Friday.

Daily Market Update 4/23/10

Mortgage rates inched higher Friday on positive economic news. Durable Goods Orders declined 1.3% in March, but excluding volatile aircraft orders, the report was much stronger than expected. New Home Sales jumped 27% in March to the highest level since last July. The looming expiration of homebuyer tax credits April 30 was credited with much of the increase. CNBC reported that at least six Federal Reserve committee members favor selling some of the $1.25 trillion of mortgage-backed securities (MBS) the Fed has purchased since late 2008 by the third or fourth quarter of this year. The Federal Open Market Committee (FOMC) of the Fed meets next Wednesday, although no such announcement is expected. Also next week, advance first quarter GDP figures are due out on Friday. MBS markets may be volatile through the week.

Daily Market Update 4/22/10

Mortgage rates were little changed as key economic data came in close to expectations. The Producer Price Index (PPI) for March rose 0.7%, while the more closely-watched "Core PPI", which excludes volatile food and energy components, rose a tame 0.1%. Weekly Jobless Claims fell to 456,000, near forecast. March Existing Home Sales increased 6.8%, better than expected. Stocks fell sharply on concerns over the Greek debt crisis. No other data will be released today.

Daily Market Update 4/21/10

With no economic data scheduled for release Wednesday, mortgage rates held steady. The Mortgage Bankers Association weekly purchase activity index rose 10.1%, while the refinancing activity index rose 15.8%. The Producer Price Index (PPI) for March will be released tomorrow.

Daily Market Update 4/20/10

Mortgage rates were little changed Tuesday in quiet trading. Federal Reserve Chairman Ben Bernanke will be testifying about the handling of Lehman during the financial crisis. No economic data will be released today.

Daily Market Update 4/19/10

Rates held steady Monday following the release of better than expected economic news. Leading Indicators rose 1.4% in March, beating the consensus forecast of +1.1%. The report suggests the current recovery will continue, and may accelerate, during the second half of the year. Stocks were mixed. No other key economic data will be released until Thursday.

Daily Market Update 4/15/10

Mortgage rates were little changed Thursday in volatile trading as investors attempted to analyze conflicting economic data. Weekly Jobless Claims rose sharply to 484,000, far above the consensus forecast. The April Empire State index surged to 31.9. A reading of 24.0 had been expected. Industrial Production increased just 0.1%, well below expectations. Stocks were mixed. Mortgage-backed securities prices have improved from earlier lows. Favorable re-pricing may occur.

Daily Market Update 4/14/10

Mortgage rates inched higher Wednesday in volatile trading. The Consumer Price Index (CPI) came in close to expectations, while March Retail Sales beat forecast. The Beige Book, a survey of the Fed's twelve regional banks, reported improving economic conditions in all but one of the regions. Stocks moved higher. No other data will be released today.

Daily Market Update 4/13/10

Mortgage rates moved lower Tuesday, reflecting a rally in mortgage-backed securities (MBS) prices late Monday. It has been a volatile morning, and unfavorable repricing may occur. March Import Prices, excluding oil, declined -0.2%. The February Trade Deficit was slightly higher than expected. No other data will be released today.

Daily Market Update 4/12/10

Rates were little changed Monday. No economic data will be released today.

Daily Market Update 4/9/10

Mortgage rates ended the week little changed from where they started on Monday. Bidding on yesterday's 30-year Treasury bond auction was considered average, disappointing investors following a better than expected 10-year note auction on Wednesday. No economic data will be released today. The most important data next week will be the Consumer Price Index and Retail Sales for March, both of which come out on Wednesday. Concerns about the economic situation in Greece may add to the volatility in bond and mortgage-backed securities markets.

Daily Market Update 4/8/10

Rates inched lower Thursday following better-than-expected results from yesterday's 10-year Treasury auction. In economic news, weekly Jobless Claims rose to 460,000, well above forecast. The European Central Bank (ECB) made no change in rates, as expected. The Treasury will announce results of today's auction of 30-year bonds at 1:00 PM.

Daily Market Update

Rates held steady Wednesday ahead of this afternoon's auction of 10-year Treasuries. Auction results will be released at 1:00 PM. Yesterday's auction of 3-year notes was met with average demand, an improvement over the results from the Treasury's last auction two weeks ago. The Mortgage Bankers Association weekly purchase activity index rose 0.2%, while the refinancing activity index decreased by 17%. Average reported 30-year fixed rates rose last week to 5.31% with 0.64 points, the highest level since August. No economic data will be released today.

Daily Market Update 4/6/10

Rates were little changed ahead of today's 3-year Treasury auction. Investors will be closely monitoring the results of this week's auctions of 3-, 10-, and 30-year securities following disappointing Treasury auction results two weeks ago. Also today, the Fed will release minutes from last month's FOMC meeting at 2:00 PM.

Daily Market Update 4/5/10

Rates inched higher Monday on stronger than expected economic data. The Institute for Supply Management services index came in at 55.4, up from 50.0 last month. Readings above 50.0 indicate expansion in the services sector of the economy. Pending Home Sales rose 8.2% in February. A 1.0% decline had been forecast. Analysts credit the $8,000 first-time homebuyer, and $6,500 repeat buyer tax credits, which are due to expire April 30, with much of the surge. No other data will be released today.

Daily Market Update 4/2/10

Rates came under pressure Friday following release of the March Non-farm Payrolls report. The economy added 162,000 jobs last month, the highest level in three years. The Unemployment Rate remained at 9.7%. Hiring of temporary census workers added 48,000 jobs, less than expected. Upward revisions to data from prior months added 62,000 jobs. Average Hourly Earnings, a proxy for wage growth, declined slightly. Mortgage-backed securities markets will close early at 12:00 noon for Good Friday.

Daily Market Update 3/31/10

Mortgage rates held steady Wednesday on mixed economic data. The Chicago Purchasing Managers Index declined more than expected to 58.8 from 62.6 last month. Meanwhile, Factory Orders increased 0.6% in February, beating forecast. The Mortgage Bankers Association weekly purchase activity index rose 6.8%, while the refinancing activity index fell 1.3%. No other data will be released today.

Daily Market Update 3/30/10

Mortgage rates inched higher Tuesday as the yield spread between mortgage-backed securities (MBS) and Treasuries increased. The Fed will end its $1.25 trillion MBS purchase program tomorrow, which has been credited with holding mortgage rates down for the past 16 months. In economic news, the Conference Board reported Consumer Confidence rose to 52.5 in March from 46.4 in February, beating expectations. Stock moved higher. No other data will be released today.

Daily Market Update 3/29/10

Mortgage rates were little changed Monday. February Personal Income was flat from January, which was slightly below forecast. The February Core PCE price index also was unchanged, and increased at a tame 1.3% annual rate, indicating inflation is not a concern in the near term. Consumer Spending rose 0.3%, matching expectations. No other data will be released today.

Daily Market Update 3/26/10

Rates were little changed Friday. Mortgage-backed securities (MBS) came under pressure this week following three consecutive days of poor auction results for US Treasuries, beginning Tuesday. This morning, former Federal Reserve Chairman Alan Greenspan called the recent rise in Treasury yields a "canary in the mine", saying investors are concerned about "this huge overhang of federal debt which we have never seen before". In economic news, fourth Quarter GDP was revised down to +5.6%, a bit below expectations. Consumer Sentiment was unchanged in March. Stocks moved higher. Next week will be extremely busy in terms of key economic data. Core PCE, the Fed's preferred measure of inflation, will be released Monday, the Chicago Purchasing Managers Index will come out Tuesday, the Institute for Supply Management manufacturing index on Thursday, and the closely-watched Non-farm Payrolls report for March will be released Friday. MBS markets may be unusually volatile. No other data will be released today.

Daily Market Update 3/25/10

Rates moved higher yesterday afternoon, triggered by poor Treasury auction results, and have now risen by about 1/4% for the week. The sharp sell-off in mortgage-backed securities (MBS) reflects global concerns for bonds, in general, on the downgrading of Portuguese debt. Buyers are also demanding higher yields as the Fed ends their MBS purchase program next week. Fed Chairman Ben Bernanke speaks today about the Fed's exit strategy from the MBS purchase program. Investors will be closely watching today's Treasury auction of 7-year notes. In economic news, weekly Jobless Claims fell to 442,000, below the consensus forecast of 450,000.

Daily Market Update 3/24/10

Rates moved higher Wednesday ahead of this afternoon's record-tying $42 billion Treasury auction of 5-year notes. In economic news, Durable Goods Orders rose 0.5% in February, close to forecast. Outside of the auto sector, strength was seen in most areas, hurting mortgage-backed securities. Stocks were mostly lower, the dollar higher. No other data will be released today.

Daily Market Update 3/23/10

Mortgage rates inched lower Tuesday as Existing Home Sales declined for the third straight month in February. In testimony before the House Financial Services Committee, Treasury Secretary Timothy Geithner called for an overhaul of the housing finance system. Congress is considering what to do about Fannie Mae and Freddie Mac in response to the taxpayer bailouts of the two agencies. "Private gains can no longer be supported by the umbrella of public protection, capital standards must be higher and excessive risk-taking must be appropriately restrained" said Geithner. No other economic data will be released today. The Treasury will announce the results of its auction of 2-year notes at 1:00 PM.

Daily Market Update 3/22/10

Rates were little changed Monday in quiet trading. Results of large Treasury auctions scheduled for Tuesday, Wednesday, and Thursday may have the greatest impact on mortgage-backed securities this week. Revised first quarter GDP, the broadest measure of economic activity, will come out Friday. No data will be released today.

Daily Market Update 3/19/10

Rates inched higher Friday in light trading. Investors may be squaring their positions ahead of the scheduled end of the Fed's mortgage-backed securities purchase program March 31. No economic data will be released today. Next week will be extremely light in terms of new data. Existing Home Sales will come out on Tuesday, New Home Sales and Durable Goods Orders on Wednesday. Financial markets may be influenced more by political issues, such as health care and financial regulatory reform, in the coming days.

Daily Market Update 3/18/10

Rates held steady Thursday as the February Consumer Price Index (CPI) was unchanged from January, below the consensus forecast of +0.1%. Core CPI rose 0.1%, and increased at a low 1.3% annual rate, showing that core inflation remains in check for the time being. Leading Indicators rose 0.1%, in line with expectations. Weekly Jobless Claims came in at 457,000, slightly above forecast. No other data will be released today.

Daily Market Update 3/17/10

Mortgage rates inched lower Wednesday morning. Yesterday the Fed left rates unchanged and offered no surprises, saying that "economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period." In economic news, the February Producer Price Index (PPI) declined -0.6%, below expectations. The more closely-watched "Core PPI", which excludes volatile food and energy components, rose 0.1%, as forecast. The Mortgage Bankers Association weekly purchase activity index fell 2.3%, while the refinancing activity index decreased 1.7%, in spite of lower mortgage rates. The average reported 30-year fixed rate last week was 4.91% with 1.30 points. No other data will be released today.