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.