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.