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.