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.