Daily Market Update 12/23/11

Mortgage rates inched higher Friday ahead of the extended holiday weekend.  In economic news, November Durable Goods Orders rose 3.8%, which was nearly double the consensus forecast.  Excluding volatile aircraft orders, however, the data fell short of expectations.  The Core PCE price index, a key measure of inflation used by the Fed, increased 0.1% last month, and was a tame 1.7% higher than one year ago.  New Home Sales rose by 1.6% to 315,000 annual units, matching forecast.  Mortgage-backed securities markets will close early today.  Seasons Greetings!

Daily Market Update 12/22/11

Mortgage rates held steady Thursday despite the release of generally stronger than expected economic data.  This morning, weekly Jobless Claims fell to 364,000, below the consensus forecast of 380,000, to the lowest level since April 2008.  Third quarter GDP was revised lower to 1.8% from 2.0%.  Consumer Sentiment rose to 69.9.  A reading of 68.0 had been expected.  Leading Indicators increased by 0.5%, beating forecast.  No other key data will be released today.

Daily Market Update 12/21/11

Mortgage rates inched higher Wednesday.  In economic news, Existing Home Sales rose 4.0% in November.  In a related story, the National Association of Realtors (NAR) lowered its estimated home sales figures from 2007 to present by 16.7%.  The NAR cited a correction in its methods of calculation for the large downward adjustment.  The Mortgage Bankers Association weekly purchasing activity index fell by 4.9%, while the refinancing activity index declined by 1.6%.  Average reported 30-year fixed rates fell to 4.08%, not including fees, which was the lowest rate this year.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 12/20/11

Mortgage rates remained near historic lows on Tuesday.  A rally in stocks caused mortgage-backed securities to give back Monday's late gains.  In economic news, November Housing Starts increased by 9.3% to an annual rate of 685,000 units, easily beating the consensus forecast of 630,000.  Results from today's 5-year Treasury auction will be released at 1:00 PM.  The two-month payroll tax cut extension passed by the Senate remains stuck in the House.  The Senate bill provides funding for the measure with a permanent increase on fees charged to borrowers by Fannie Mae and Freddie Mac.  The bill is opposed by the National Association of Realtors, the National Association of Mortgage Brokers, the Mortgage Bankers Association, and the National Association of Home Builders.

Daily Market Update 12/16/11

Mortgage rates were little changed Friday as new inflation data came in close to expectations.  The November Consumer Price Index (CPI) was unchanged, below the consensus forecast of +0.1%, and was 3.4% higher than one year ago.  Core CPI, which excludes volatile food and energy components, rose by 0.2%, a bit more than expected.  Core CPI has been steadily climbing from the lows seen late last year.  Next week we will get a picture of recent real estate sales activity.  November Housing Starts will come out on Tuesday, Existing Home Sales on Wednesday, and New Home Sales on Friday.  Durable Goods Orders will also be released on Friday.  No other key data will be released today.

Daily Market Update 12/13/11

Mortgage rates remained near record-low levels Tuesday ahead of this afternoon's Fed announcement.  In economic news, Retail Sales rose 0.2%, below expectations.  Results from today's 10-year Treasury auction will be released at 1:00 PM.  The Federal Open Market Committee of the Fed is meeting today and will release its statement at 2:15 PM.  No rate changes are expected, and investors are not anticipating any plans for additional stimulus at this time.

Daily Market Update 12/7/11

Mortgage rates were little changed Wednesday in quiet trading.  This morning, a German official expressed skepticism that all 27 countries in the European Union will agree to tighter budget controls.  The Mortgage Bankers Association weekly purchase activity index rose 8.3% last week, while the refinancing activity index increased by 15.3%.  Average 30-year fixed rates fell to 4.18%, not including fees.  No key economic data will be released today.

Daily Market Update 12/5/11

Mortgage rates held steady Monday.  In economic news, Factory Orders declined 0.4%, matching forecast.  The Institute for Supply Management services index came in at 52.0, slightly lower than expected.  Investors are mainly focusing on developments in Europe, where there is increased optimism that European leaders will reach an agreement to help ease the sovereign debt crisis.  Italy passed a package of new austerity measures over the weekend.  No other key data will be released today.

Daily Market Update 12/2/11

Rates were little changed Friday following the November Employment Report.  The economy added 120,000 jobs last month, slightly less than expected, but revisions to prior months added another 72,000 jobs.  The Unemployment Rate fell unexpectedly to 8.6%, although much of the decrease resulted from a 315,000 reduction in the number of people looking for work.  Average Hourly Earnings, a proxy for wage growth, declined by 0.1%.  Overall, the employment data beat forecast.  Stocks moved higher.  No other key data will be released today.

Daily Market Update 11/30/11

Mortgage rates faced upward pressure Wednesday as stocks surged.  This morning, major central banks around the world announced a joint program to lower the borrowing costs and boost liquidity for non-US banks.  China lowered rates for the first time in three years in an effort to spur economic growth.  Economic data in the US came in better than expected.  The ADP forecast for private payrolls was for a net gain of 206,000 jobs.  The Chicago Purchasing Managers Index rose to 62.6, well above the consensus forecast of 57.5.  The Mortgage Bankers Association purchase activity index fell by 0.8%, while the refinancing activity index declined by 15.3%.  Average reported 30-year fixed rates dipped to 4.21%, not including fees.  No other key data will be released today.

Daily Market Update 11/29/11

Mortgage rates inched higher Tuesday as Consumer Confidence rose to 56.0, its highest level since July.  A reading of 42.5 had been expected.  This morning, the S&P/Case Shiller 20-city home price index declined by 3.6% in September from one year ago.  No other key data will be released today.

Daily Market Update 11/23/11

Mortgage rates inched higher Wednesday in light trading ahead of the Thanksgiving holiday.  October Durable Goods Orders fell 0.7%, but increased 0.7% excluding the volatile transportation component.  Personal Income rose 0.4%, which was close to expectations.  The October Core PCE price index, one of the Fed's preferred measures of inflation, increased 0.1%, matching forecast.  Weekly Jobless Claims rose slightly to 393,000.  The U.S. financial markets will be closed tomorrow.  Happy Thanksgiving!

Daily Market Update 11/22/11

Rates held steady Tuesday in quiet trading.  Third quarter Gross Domestic Product (GDP) was revised lower to 2.0% from 2.5%.  The decline was mostly due to shrinking inventories and is expected to have little impact on future growth.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/21/11

Mortgage rates were little changed Monday.  Concerns about Europe and the inability of the Congressional 12-member "super committee" to reach an agreement drove stocks sharply lower.  In economic news, Existing Home Sales rose by 1.4% in October, beating forecast.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/18/11

Mortgage rates remained steady Friday in quiet trading.  Leading Indicators rose 0.9%, beating expectations.  No other key economic data will be released today.  Next week, revised third quarter GDP figures will come out on Tuesday.  Durable Goods Orders, the Core PCE price index, and minutes from the November FOMC meeting of the Fed will be released on Wednesday.  Also next week, the Treasury will hold auctions of 3-, 5-, and 7-year notes over three days beginning Monday.  Financial markets will be closed on Thursday in observance of Thanksgiving.

Daily Market Update 11/17/11

Rates were little changed Thursday as nervousness about Europe was offset by stronger than expected economic data in the US.  European stocks fell after Spain's borrowing costs rose sharply.  The average yield on their 10-year bond surged to 6.97% from 5.43% last month.  In the US, weekly Jobless Claims fell to 388,000, below the consensus forecast, to the lowest level in seven months.  October Housing Starts declined to an annual rate of 628,000, beating expectations.  The Philadelphia Fed Index, a broad measure of manufacturing activity in the region, fell to 3.6.  Readings above zero represent expansion in the manufacturing sector.  No other key data will be released today.

Daily Market Update 11/16/11

Rates moved lower Wednesday as investors remained focused on the European debt crisis.  Bond yields in weaker European countries moved higher.  In economic news, the October Consumer Price Index (CPI) fell 0.1%, slightly lower than expected, and was 3.6% higher than one year ago.  Core CPI, which excludes volatile food and energy components, rose 0.1%, matching forecast.  Industrial Production increased 0.7% in October, beating expectations.  No other data will be released today.

Daily Market Update 11/15/11

Mortgage rates were little changed Tuesday with no major news from Europe.  October Retail Sales rose 0.5%, exceeding forecast.  The Producer Price Index (PPI) declined 0.3%, which was lower than expected, and was 5.9% higher than one year ago.  Core PPI, which excludes volatile food and energy components, was unchanged from September.  No other key data will be released today.

Daily Market Update 11/14/11

Mortgage rates held steady Monday in quiet trading.  No key economic data will be released today.

Daily Market Update 11/11/11

Rates were unchanged Friday as mortgage-backed securities markets were closed in observance of Veterans Day.  In economic news, Consumer Sentiment rose to 64.2, beating expectations, to the highest level since May.  Stocks rallied following progress in Greece and Italy to curb the region's sovereign debt crisis.  Next week, the Producer Price Index and Retail Sales will be released on Tuesday, and the Consumer Price Index and Industrial Production on Wednesday.  No other key data will be released today.

Daily Market Update 11/10/11

Mortgage rates inched higher Thursday following the release of stronger than expected economic data.  Weekly Jobless Claims fell to 390,000, the lowest level since April.  October Import Prices declined by 0.6%, and the Trade Deficit was smaller than the consensus forecast.  Italian 10-year bond yields fell below the 7% level, easing investor concerns slightly.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/9/11

Mortgage rates inched lower Wednesday as mortgage-backed securities recovered from yesterday's losses.  Investors remained focused on Italy's debt problems.  Italian 10-year bond yields rose above 7%, a level widely considered to be the tipping point for sustainability.  Global stock markets fell sharply.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/7/11

Mortgage rates were little changed Monday.  Investors are likely to focus on developments in Europe this week, as no key economic data will be released in the U.S.  Greek Prime Minister George Papandreou announced he will resign and there will be no public referendum on government-approved austerity measures.  In Italy, Prime Minister Silvio Berlusconi may be facing the same fate, but has denied his resignation is eminent.

Daily Market Update 11/3/11

Mortgage rates inched higher Thursday as news from Europe dominated financial markets.  The European Central Bank (ECB) unexpectedly cut interest rates by 25 basis points (.25%) on growing concerns about Greece.  With inflation in Europe running higher than the traditional comfort levels, investors were surprised by the move.  Greek Prime Minister George Papandreou faces a confidence vote in Parliament tomorrow that will determine his political fate.  In the U.S., third quarter Productivity increased at a 3.1% annual rate, above the consensus forecast.  Weekly Jobless Claims fell to 397,000, close to expectations.  Troubled mortgage giant Freddie Mac asked for an additional $6 billion of taxpayer funds after reporting a third quarter loss of $4.4 billion.  Factory Orders rose by 0.3%, better than expected.  No other key data will be released today.

Daily Market Update 11/2/11

Mortgage rates inched lower Wednesday, reflecting yesterday's gains in mortgage-backed securities markets.  In economic news, payrolls firm ADP forecast a net gain of 110,000 private sector jobs in October ahead of this Friday's Employment Report, beating expectations.  This afternoon the Fed will hold a press conference at 2:15 to discuss its two-day FOMC meeting.  Investors will be looking for signs of additional easing.  Fed officials are reportedly divided about the appropriate course of action.

Daily Market Update 10/31/11

Mortgage rates moved lower Monday as a decline in stock markets boosted mortgage-backed securities (MBS).  In economic news, the Chicago Purchasing Managers Index fell to 58.4, below the consensus forecast, to the lowest level since May.  U.S. securities firm MF Global Holdings filed Chapter 11 bankruptcy this morning, an apparent casualty of the European sovereign debt crisis.  The Federal Reserve begins its two-day FOMC meeting tomorrow.  Five of the ten voting members have voiced disagreement with recent Fed policy, three of whom believe the Fed has done too much to ease credit, two who believe the Fed has done too little.  A statement will be released by the Fed on Wednesday.  MBS markets may remain volatile all week.  In addition to the Fed meeting, October's Employment Report will be released on Friday.

Daily Market Update 10/28/11

Mortgage rates inched lower Friday as mortgage-backed securities recovered from yesterday's losses.  This morning, the September Core PCE price index, one of the Fed's preferred measures of inflation, was unchanged from August and a modest 1.6% higher than one year ago.  Personal Income increase by 0.1%, less than expected.  Consumer Sentiment rose to 60.9, beating expectations.  Next week is likely to be extremely volatile.  The Federal Open Market Committee (FOMC) of the Fed will wrap up a two day meeting to discuss monetary policy on Wednesday.  No rate changes are expected, but investors will be watching for news of additional stimulus plans.  Non-farm Payrolls, the most closely-watched economic report of the month, will be released on Friday.  Also next week, the ISM manufacturing index will come out on Tuesday.  No other key data will be released today.

Daily Market Update 10/27/11

Rates moved higher Thursday as European leaders announced a comprehensive aid package that eased investors' concerns.  Stocks rallied, hurting bonds and mortgage-backed securities.  In economic news, weekly Jobless Claims fell to 402,000, close to expectations.  Preliminary third quarter GDP figures reported growth of 2.5%, matching forecast.  September Pending Home Sales declined by 4.6%, much more than expected.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/26/11

Rates inched higher Wednesday, giving back yesterday's gains.  Trading remained volatile as investors continued to focus on Europe.  This morning, optimism that European leaders will agree on a comprehensive aid package lifted stocks and hurt mortgage-backed securities.  In economic news, Durable Goods Orders fell by 0.8%, a bit less than expected.  Excluding the transportation component, Durable Orders rose 1.7%, beating forecast.  New Home Sales increased by 5.7% in September to 313,000 annual units.  Unit sales of 300,000 had been expected.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/25/11

Mortgage rates moved lower Tuesday as comments from European officials suggested that a comprehensive aid package may be delayed.  Healthier countries would be required to aid troubled countries in return for greater fiscal discipline.  It appears Italy may be reluctant to make the deep spending cuts asked for in the plan.  Stocks moved lower.  In economic news, Consumer Confidence fell sharply to 39.8 from 45.4.  An increase to 46.0 had been expected.  No other key data will be released today.

Daily Market Update 10/24/11

Rates inched higher Monday as strength in stock markets hurt mortgage-backed securities.  Investors remain focused on Europe, with a big announcement expected on Wednesday.  European officials are working on a broad aid package, and details will be released following Wednesday's summit.  No key economic data will be released today.

Daily Market Update 10/17/11

Rates were little changed Monday as mortgage-backed securities recovered from Friday's losses.  In economic news, September Industrial Production increased 0.2%, matching forecast.  Earlier today, German Finance Minister Wolfgang Schaeuble lowered expectations for an immediate solution to the Euro Zone's sovereign debt crisis.  Stocks moved lower.  No other key data will be released today.

Daily Market Update 10/14/11

Rates were little changed Friday as mortgage-backed securities gave up Thursday's gains.  In economic news, Retail Sales rose by 1.1%, well above the consensus forecast of +0.6%.  September Import Prices increased by 0.3%.  Consumer Sentiment fell to 57.5, below expectations.  Next week will be busy in terms of new economic data.  Industrial Production will be released on Monday, the Producer Price Index on Tuesday, and the Consumer Price Index on Wednesday.  We will also get figures on Housing Starts and Existing Home Sales on Wednesday and Thursday.  No other key data will be released today.

Daily Market Update 10/12/11

Mortgage rates were little changed Wednesday, but have risen by about 3/8% over the past week, as investors have expressed renewed optimism over the European debt crisis and the September Employment Report.  Minutes from last month's FOMC meeting of the Fed will be released at 2:00 PM.  Results from today's 10-year Treasury auction will be released at 1:00 PM.  The Mortgage Bankers Association weekly purchase activity index rose by 1.1%, while the refinancing activity index increased by 1.3%.  Average reported 30-year fixed rates rose to 4.25%, not including fees.

Daily Market Update 10/7/11

Rates moved higher Friday following the release of stronger than expected employment data.  The economy added 103,000 jobs in September, well above the consensus forecast of +60,000.  Also, the data for July and August were revised higher by 99,000.  The Unemployment Rate remained at 9.1%.  Average Hourly Earnings, a proxy for wage growth, increased by 0.2%.  The relative strength of the report reduces the likelihood of another recession.  Stocks moved higher.  Next week, minutes from last month's FOMC meeting of the Fed will be released on Tuesday, Retail Sales will come out on Friday.  No other key data will be released today.

Daily Market Update 10/6/11

Mortgage rates inched higher Thursday ahead of tomorrow's closely-watched Employment Report.  In economic news, weekly Jobless Claims rose to 401,000, slightly above expectations.  Freddie Mac reported that average 30-year fixed rates fell last week to a record low 3.94% with 0.8 points.  No other data will be released today.

Daily Market Update 10/5/11

Rates inched higher Wednesday following the release of stronger than expected economic data.  This morning, payroll firm ADP estimated a net gain of 91,000 private sector jobs in September ahead of Friday's Employment Report, beating forecast.  The Mortgage Bankers Association weekly purchase activity index fell by 1%, while the refinancing activity index decreased by 5%.  Average reported 30-year fixed rates declined to 4.18%, not including fees.  No other key data will be released today.

Daily Market Update 10/4/11

Mortgage rates were little changed Tuesday in volatile trading.  Factory Orders declined 0.2% in August, a bit more than expected.  Fed Chairman Ben Bernanke testified before the Joint Economic Committee in Congress this morning, saying the Fed is prepared to take additional steps to help boost the economy.  Meanwhile, two regional Federal Reserve Bank presidents and well-known inflation hawks, Jeff Lacker and Richard Fisher, expressed concern that additional Fed easing could lead to inflation and cause more harm than good.  Stocks moved lower.  No other key data will be released today.

Daily Market Update 9/30/11

Rates moved lower Friday as a decline in the stock market boosted mortgage-backed securities.  In economic news, the Core PCE, one of the Fed's preferred measures of inflation, rose 0.1% in August, a bit less than expected.  Personal Income fell 0.1%, below the consensus forecast for an increase of 0.1%.  The Chicago Purchasing Managers Index rose to 60.4, beating expectations.  Consumer Sentiment came in at 59.4, above forecast.  Next week, the big economic news will be Friday's Employment Report.  No other key data will be released today.

Daily Market Update 9/29/11

Mortgage rates were little changed Thursday despite the release of stronger than expected economic data and a stock market rally.  The final reading for second quarter GDP was revised higher to 1.3% from 1.0%.  Weekly Jobless Claims fell to 391,000, well below the consensus forecast of 420,000, to the lowest level since April 1.  August Pending Home Sales declined 1.3%, slightly less than expected.  Earlier today, Germany passed a vote to provide increased aid to struggling European nations.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/28/11

Mortgage rates have risen for the past three days after reaching historic lows last week.  Strength in stock markets resulting from renewed optimism over Europe has hurt bonds and mortgage-backed securities.  This morning, August Durable Goods Orders declined 0.1%, which was slightly below the consensus forecast.  The Mortgage Bankers Association weekly purchase activity index rose 2.6%, while the refinancing activity index increased by 11.2%.  Average reported 30-year fixed rates fell to 4.25%, not including fees.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/22/11

Rates moved lower Thursday as sharp declines in global stock markets boosted mortgage-backed securities.  Yesterday, the Fed announced plans to shift $400 billion of Treasury holdings to long-term from short-term securities in an effort to drive down long-term rates.  The Fed statement indicated an uncertain economic outlook by the central bank, resulting in a sharp sell-off of stocks.  Rates on 30-year fixed mortgages reached an all-time low this morning.  In economic news, weekly Jobless Claims fell to 423,000, above forecast.  Leading Indicators rose 0.3%, a bit more than expected.  No other key data will be released today.

Daily Market Update 9/21/11

Rates held steady Wednesday in quiet trading ahead of the Fed meeting.  Fed officials are divided about whether to ease monetary policy further to stimulate the economy.  Many investors believe that the Fed will announce a plan to decrease its quantity of short-term Treasury holdings and increase its long-term holdings.  The highly anticipated announcement will take place at 2:15 PM.  In economic news, August Existing Home Sales jumped 7.7%, well above expectations, to an annual rate of 5.03 million units.  The Mortgage Bankers Association weekly purchase activity index fell by 4.7%, while the refinancing activity index rose by 2.2%.  Average reported 30-year fixed rates remained unchanged at 4.29%, not including fees.

Daily Market Update 9/20/11

Rates were little changed Tuesday as investors await tomorrow's FOMC meeting of the Fed.  In economic news, August Housing Starts declined 5%, slightly more than forecast.  Building Permits, a leading indicator, rose 3%, better than expected.  Yesterday, Edward DeMarco, acting director of the Federal Housing Finance Agency (FHFA) which oversees Fannie Mae and Freddie Mac, announced that the two agencies will likely raise guarantee fees in 2012 through "a series of periodic, gradual price increases".  The move is designed to reduce long-term exposure to credit risk by taxpayers, but comes at a time when the Obama Administration is attempting to encourage more borrowers to take advantage of low mortgage rates.  Separately, some investors are expecting the Fed to announce "Operation Twist" following tomorrow's FOMC meeting.  If enacted, the Fed would re-allocate a portion of its $1.65 trillion U.S. Treasury portfolio to increase long-term bond holdings and reduce short-term holdings in an effort to push long-term rates lower.  Analysts are divided on the likely effectiveness of such a move.  No other key data will be released today.

Daily Market Update 9/19/11

Mortgage rates inched lower Monday as concerns about European debt hurt stock markets and lifted mortgage-backed securities.  No economic data will be released today.  The Federal Open Market Committee of the Fed will meet on Wednesday.

Daily Market Update 9/16/11

Rates were little changed Friday.  Mortgage-backed securities recovered from an initial sell-off after stocks pared early gains.  Consumer Sentiment rose to 57.8, beating expectations.  The big event next week will be Wednesday's FOMC meeting of the Fed.  No rate changes are expected, but the Fed may announce plans to boost the economy.  No other key data will be released today.

Daily Market Update 9/15/11

Mortgage rates moved modestly higher Thursday following the release of a wide range of economic data.  The August Consumer Price Index (CPI) rose 0.4%, above the consensus forecast of 0.2%, and was 3.8% higher than one year ago.  Core CPI, which excludes volatile food and energy components, increased 0.2%, matching expectations, and rose 2.0% year-over-year.  Weekly Jobless Claims jumped to 428,000, well above forecast, but weather-related issues may have inflated the results.  Industrial Production rose 0.2%.  An increase of 0.1% had been expected.  The Philly Fed Index, a survey of manufacturing activity in Pennsylvania, New Jersey, and Delaware, came in at -17.5.  Readings below zero indicate contraction in the manufacturing sector.  In other news, five major central banks, including the ECB and U.S. Federal Reserve, will provide lending for European banks seeking short-term liquidity.  The announcement boosted stocks, hurting bonds and mortgage-backed securities.  No other key data will be released today.

Daily Market Update 9/14/11

Rates were little changed Wednesday in volatile trading.  In economic news, the August Producer Price Index (PPI) was unchanged, matching expectations, and was 6.5% higher than one year ago.  Core PPI, which excludes food and energy components, rose 0.1%, slightly below forecast.  Retail Sales were flat in August.  An increase of 0.2% had been expected.  The Mortgage Bankers Association weekly purchase activity index rose by 7%, while the refinancing activity index increased by 6%.  Average reported 30-year fixed rates fell to 4.17%, not including fees.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/13/11

Rates inched higher Tuesday in quiet trading.  August Import Prices fell 0.4% from July led by a decline in oil prices.  Excluding oil, Import Prices rose 0.3%.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/12/11

Mortgage rates remained near 60-year lows Monday.  Concerns about the increased likelihood of default by Greece hurt global stock markets.  Bank of America announced plans to eliminate 30,000 jobs over the next three years.  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 9/8/11

Rates were little changed Thursday ahead of this evening's much-anticipated jobs plan speech by President Obama.  In economic news, weekly Jobless Claims rose to 414,000, above forecast.  The July Trade Deficit was smaller than expected.  The European Central Bank (ECB) made no change in rates.  Stocks were mixed.  Fed Chairman Ben Bernanke will be speaking at 1:00 PM.  No other key data will be released today.

Daily Market Update 9/7/11

Rates moved higher Wednesday as a rally in global stock markets hurt bonds and mortgage-backed securities.  Investor concerns about Europe eased somewhat following the release of austerity measures by Italy and Greece.  The Mortgage Bankers Association weekly purchase activity index rose 0.2%, while the refinancing activity index declined by 6.3%.  Average reported 30-year fixed rates fell to 4.23%, not including fees.  The Fed's Beige Book, a survey of economic conditions by the twelve regional Federal Reserve Banks, will be released at 2:00 PM.

Daily Market Update 9/6/11

Mortgage rates were little changed Tuesday in quiet trading.  Stocks fell sharply on growing concerns that the economy may be moving closer to a recession.  In economic news, the Institute for Supply Management services index rose unexpectedly to 53.3 from 52.7.  Readings above 50.0 indicate growth in the services sector of the economy.  No other key data will be released today.

Daily Market Update 9/2/11

Rates inched lower Friday following the release of weaker than expected employment data.  The U.S. economy added no net jobs in August, and the figures for June and July were revised lower by 58,000.  The unemployment rate remained at 9.1%.  Average Hourly Earnings, a proxy for wage growth, declined unexpectedly.  Stocks fell sharply.  In addition, investors grew more concerned about the health of European banks and the willingness of Italy's political leaders to implement austerity measures.  Next week will be relatively quiet in terms of new economic data.  Markets will be closed on Monday in observance of Labor Day.

Daily Market Update 9/1/11

Rates held steady Thursday in another day of volatile trading.  In economic news, weekly Jobless Claims fell to 409,000, close to forecast.  Second quarter Productivity declined by 0.7%, a bit lower than expected.  Construction Spending fell 1.3% in July, below expectations.  The Institute for Supply Management manufacturing index came in at 50.6.  Readings above 50.0 indicate expansion in the manufacturing sector of the economy.  No other key data will be released today.

Daily Market Update 8/31/11

Rates were little changed Wednesday in volatile trading.  This morning, the Chicago PMI manufacturing index fell to 56.5, beating forecast.  Payroll firm ADP estimated a net gain of 91,000 private sector jobs in August ahead of this Friday's Employment Report, a bit less than expected.  Factory Orders rose 2.4%, led by the transportation component.  Stocks moved higher.  The Mortgage Bankers Association weekly purchase activity index increased by 0.9%, while the refinancing activity index decreased by 12.2%.  Average reported 30-year fixed rates fell to 4.32%, not including fees.  No other key data will be released today.

Daily Market Update 8/30/11

Mortgage rates eased slightly Tuesday following the release of weaker than expected economic data.  Consumer Confidence plummeted in August to 44.5, its lowest reading since April 2009, and well below the consensus forecast of 52.0.  Federal Reserve Bank of Chicago President Charles Evans said in an interview this morning that he would "favor more accommodation" by the Fed, citing weak economic growth in the first half of the year.  Minutes from last month's FOMC meeting of the Fed will be released at 2:00 PM.

Daily Market Update 8/29/11

Rates moved higher Monday as a rally in global stock markets hurt mortgage-backed securities.  Investors were relieved that damage from Hurricane Irene was less severe than had been expected.  In economic news, the July Core PCE price index, one of the Fed's preferred measures of inflation, increased 0.2% from June, matching expectations.  Personal Income rose by 0.3%, slightly below the consensus forecast.  Pending Home Sales fell 1.3%, a bit less than expected.  No other key data will be released today.

Daily Market Update 8/26/11

Mortgage rates inched lower Friday as second quarter GDP was revised down to 1.0% from 1.3%.  In a much-anticipated speech this morning, Fed Chairman Ben Bernanke said that the Fed will consider additional monetary stimulus measures at its September meeting and will implement them if appropriate, but that fiscal policy changes by lawmakers are needed to help boost the economy and labor market.  He gave no indication that the Fed will loosen monetary policy.  The big event next week will be Friday's Employment Report for August.  Also next week, the Institute for Supply Management manufacturing index will be released on Thursday.  No other key data will be released today.

Daily Market Update 8/25/11

Rates held steady Thursday as mortgage-backed securities recovered from losses that occurred late Wednesday.  This morning, weekly Jobless Claims rose to 417,000, above forecast, but most of the increase resulted from a labor strike at Verizon.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/24/11

Mortgage rates were little changed Wednesday.  In economic news, July Durable Goods Orders rose 4.0%, well above the consensus forecast of +2.0%.  Excluding the volatile transportation component, orders rose 0.7%, also beating expectations.  The Federal Housing Finance Agency reported that home prices fell 5.9% during the second quarter from one year earlier, the biggest drop since 2009.  The Mortgage Bankers Association weekly purchase activity index fell 5.9%, to the lowest level since December 1996.  The refinancing activity index declined by 1.7%, as average reported 30-year fixed rates rose last week to 4.39%, not including fees.  Results from today's 5-year Treasury auction will be released at 1:00 PM.  Fed Chairman Ben Bernanke will be delivering a highly anticipated speech at the annual Fed meeting in Jackson Hole, WY on Friday.  Some analysts are expecting Bernanke to announce new economic stimulus by the Fed.

Daily Market Update 8/22/11

Mortgage rates faced upward pressure Monday as a rally in global stock markets pushed mortgage-backed securities lower.  No key economic data will be released today.

Daily Market Update 8/19/11

Mortgage rates moved higher Friday after hitting 50-year lows yesterday.  Investors are expressing concerns that the Fed's pledge to hold short-term rates near zero until mid-2013 risks an inflationary surge once the economy begins to improve.  Also, some lenders have begun increasing margins to slow refinancing volume due to capacity limitations.  No key economic data will be released today.  Next week, New Home Sales will come out on Tuesday, Durable Goods Orders on Wednesday, and revised second quarter GDP figures on Friday.

Daily Market Update 8/18/11

Rates inched lower Thursday as weakness in global stock markets lifted mortgage-backed securities.  The Wall Street Journal reported that the Federal Reserve Bank of New York has increased its scrutiny of large European banks with U.S. operations over concerns that the banks may lack reliable access to the funds needed for day-to-day operations.  In economic news, weekly Jobless Claims rose to 408,000, above the consensus forecast of 400,000.  The July Consumer Price Index (CPI) increased 0.5% from June, more than expected, and was 3.6% higher than one year ago.  Core CPI, which excludes food and energy components, rose a more tame 0.2%, in line with expectations.  Existing Home Sales fell unexpectedly by 3.5%.  Leading Indicators rose 0.5%, beating forecast.  No other key economic data will be released today.

Daily Market Update 8/17/11

Mortgage rates dipped Wednesday in spite of an unexpected increase in wholesale prices.  The July Producer Price Index (PPI) rose 0.2% from June, and was 7.2% higher than one year ago.  Core PPI, which excludes volatile food and energy components, rose 0.4% in July, and 2.5% year-over-year.  Stocks moved higher.  No other key data will be released today.

Daily Market Update 8/16/11

Mortgage rates held steady Tuesday as the impact of stronger than expected economic data was offset by weakness in stock markets.  July Housing Starts fell 1.5% to an annual rate of 604,000 units, in line with expectations.  Industrial Production rose 0.9%, above the consensus forecast of +0.5%, to the fastest pace in seven months.  European officials are meeting to discuss support for European banks.  No other key data will be released today.

Daily Market Update 8/15/11

Rates were little changed Monday as last week's extreme market volatility began to settle.  In economic news, the Empire State Index fell to -7.7, below the consensus forecast of +1.0.  No other key data will be released today.

Daily Market Update 8/12/11

Mortgage rates held steady Friday, ending one of the most volatile weeks ever.  Yesterday, rates reached new lows for the year.  This morning, July Retail Sales rose 0.5%, in line with expectations.  Consumer Sentiment fell to the lowest level since May 1980.  No other key data will be released today.  Next week, Industrial Production will come out on Tuesday, the Producer Price Index on Wednesday, and the Consumer Price Index and Existing Home Sales on Thursday.

Daily Market Update 8/11/11

Mortgage rates were little changed Thursday as stocks rebounded from yesterday's steep losses.  Trading remains highly volatile.  In economic news, weekly Jobless Claims fell to 395,000, below forecast, to the lowest level since April.  The June Trade Deficit rose to $53.1 billion, larger than expected.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/10/11

Mortgage rates moved lower Wednesday on the heals of yesterday's unprecedented Fed statement.  The Federal Open Market Committee said it "currently anticipates" that economic conditions "warrant exceptionally low levels for the federal funds rate at least through mid-2013".  Stocks, bonds, and mortgage-backed securities rallied on the news, although US stock markets fell sharply this morning on concerns about European banks.  The Fed has never before provided such an extended outlook for its monetary policy intentions, and this may be an indication that the Fed is running out of tools to stoke economic growth.  It also underscores the level of weakness in the economy as viewed by the Fed.  In the near term, it should bode well for mortgage rates, and may help boost the depressed real estate market.  No key economic data will be released today.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/9/11

Rates inched higher Tuesday morning as stocks partially recovered from yesterday's drubbing.  The Federal Open Market Committee (FOMC) of the Fed is meeting today to discuss monetary policy and will release a statement at 2:15 PM.  Investors will be watching closely for indications of further stimulus by the Fed.  In economic news, second quarter Productivity fell by 0.3%, a bit less than forecast.  Results from today's $32 billion 3-year Treasury auction, the first since Friday's US credit downgrade by S&P, will be released at 1:00 PM.

Daily Market Update 8/8/11

Rates moved lower Monday in spite of S&P's credit ratings downgrades of Fannie Mae, Freddie Mac, and Federal Home Loan Bank debt.  These follow Friday's downgrade of US debt.  A flight to quality from riskier assets, such as stocks and commodities, boosted Treasury bonds and mortgage-backed securities.  Oil prices fell sharply, while gold prices surged.  Investors are also focusing on the slowing pace of global economic growth.  Markets are likely to remain extremely volatile in the coming days.  No key economic data will be released today.

Daily Market Update 8/5/11

Mortgage rates inched higher Friday following a better than expected Employment Report.  The economy added 117,000 jobs in July, beating the consensus forecast of 85,000.  The Unemployment Rate unexpectedly declined to 9.1%.  Average Hourly Earnings, a proxy for wage growth, increased at a 2.3% annual rate, which was higher than expected.  Although the employment picture remains weak, today's data exceeded expectations in nearly every area, pushing stocks modestly higher and hurting bonds and mortgage-backed securities.  The big event next week will be Tuesday's FOMC meeting of the Fed.  While no rate change is expected, investors will be looking for indications that the Fed may be considering other stimulative measures.  Also next week, Retail Sales figures for July will be released on Friday.  No other key data will be released today.

Daily Market Update 8/4/11

Rates inched lower Thursday as concerns about debt problems in weaker European nations hurt stock markets and lifted mortgage-backed securities.  The European Central Bank (ECB) made no change in interest rates, as expected.  Weekly Jobless Claims came in at 400,000, matching forecast.  Tomorrow, the closely-watched Employment Report for July will be released at 8:30 AM.  No other data will be released today.

Daily Market Update 8/3/11

Rates continued their downward trend Wednesday as weakness in stock markets boosted bonds and mortgage-backed securities.  In economic news, payroll firm ADP forecast private sector job growth of 117,000 in July ahead of this Friday's Employment Report.  Factory Orders declined 0.8%, close to expectations.  The Institute for Supply Management services index fell to 52.7, a bit below forecast.  Readings above 50.0 indicate expansion in the services sector of the economy.  The Mortgage Bankers Association weekly purchase activity index rose by 5.1%, while the refinancing activity index increased by 7.8%.  Average reported 30-year fixed rates fell to 4.45%, not including fees.  No other key data will be released today.

Daily Market Update 8/2/11

Mortgage rates inched lower Tuesday, and are now at their lowest levels since November.  This morning, the June Core PCE price index, a preferred measure of inflation by the Fed, rose 0.1%, below the consensus forecast of +0.2%.  June Personal Income increased 0.1%, matching expectations.  Consumer Spending declined unexpectedly.  Last night the House passed a proposed $2.4 trillion debt ceiling increase.  The Senate is expected to pass the measure today and send it to the White House for final approval by President Obama.  Stocks moved sharply lower.  No other key data will be released today.

Daily Market Update 8/1/11

Rates moved lower Monday on weaker than expected economic data and optimism over a proposed debt ceiling increase.  The proposal calls for about $2.4 trillion in spending cuts over 10 years.  If passed, it's not clear whether the deficit reduction would be enough to prevent a downgrade in the credit rating of the US.  In economic news, the Institute for Supply Management manufacturing index fell to 50.9, far below forecast.  Readings above 50.0 indicate expansion in the manufacturing sector of the economy.  Construction Spending rose 0.2%, in line with expectations.  No other key data will be released today.

Daily Market Update 7/28/11

Mortgage rates held steady Thursday while uncertainty about debt ceiling negotiations continued to produce volatility in mortgage-backed securities' markets.  Weekly Jobless Claims fell to 398,000, below forecast, and to the lowest level since early April.  June Pending Home Sales rose 2.4%, beating expectations.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 7/27/11

Rates were little changed Wednesday in another day of volatile trading.  This morning, June Durable Goods Orders declined 2.1%, below the consensus forecast.  The Mortgage Bankers Association weekly purchase activity index fell by 4%, while the refinancing activity index declined by 6%.  Average reported 30-year fixed rates rose last week to 4.57%, not including fees.  Stocks moved lower as investors remained focused on debt ceiling negotiations.  Results from today's 5-year Treasury auction will be released at 1:00 PM.  The Beige Book, a survey of economic activity by the Fed's 12 regional banks, will be released at 2:00.

Daily Market Update 7/26/11

Rates were little changed Tuesday in another day of volatile trading.  Debt ceiling talks continue to be the main focus of investors.  In economic news, Consumer Confidence rose unexpectedly to a reading of 59.5 from 57.6.  New Home Sales fell by 1% to 312,000 annual units.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 7/25/11

Rates inched higher Monday in volatile trading.  Investors are growing more concerned as debt ceiling talks over the weekend failed yield results and the August 2 deadline approaches.  No economic data will be released today.

Daily Market Update 7/22/11

Mortgage rates held steady Friday as investors focused mainly on debt ceiling talks.  No key economic data will be released today.  Next week, Durable Goods Orders and the Beige Book, a survey of the Fed's 12 regional banks, will come out on Wednesday.  Advanced second quarter GDP estimates will be released on Friday.  The Treasury will hold auctions of 2-, 5-, and 7-year notes over three days, beginning Tuesday.  Debt limit negotiations are likely to overshadow daily economic news as the August 2 deadline draws near.

Daily Market Update 7/21/11

Rates inched higher Thursday as a rally in stocks pushed mortgage-backed securities' prices lower.  This morning, a new aid package for Greece and an overhaul of the region's rescue fund reduced investor concerns that the debt problems will spread.  In economic news. weekly Jobless Claims rose to 418,000, slightly above forecast.  Leading Indicators rose 0.3%, in line with expectations.  No other key data will be released today.

Daily Market Update 7/20/11

Mortgage rates were little changed Wednesday.  In economic news, the National Association of Realtors reported that Existing Home Sales fell 0.8% in June to the lowest level since November.  An increase of 2.9% had been expected.  No other key data will be released today.

Daily Market Update 7/13/11

Rates held steady Wednesday ahead of Fed Chairman Bernanke's testimony before the House Financial Services Committee.  This morning, June Import Prices declined by 0.5% from May, largely due to lower oil prices.  The Mortgage Bankers Association weekly purchase activity index fell by 3%, while the refinancing activity index dropped by 6%.  Average reported 30-year fixed rates declined to 4.55% last week, not including fees.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 7/12/11

Mortgage rates were little changed Tuesday.  In economic news, the May Trade Deficit increased to $50.2 billion, well above the consensus forecast of $44.0 billion, and to the highest level since October 2008.  Minutes from last month's FOMC meeting of the Fed will be released at 2:00 PM.  Results from today's $32 billion 3-year Treasury auction will be released at 1:00.

Daily Market Update 7/11/11

Rates moved lower Monday on renewed concerns that Italy may experience debt problems similar to those seen in Greece.  The resulting flight to safety hurt stocks and boosted bonds and mortgage-backed securities.  Rates improved Friday following a much weaker than expected Employment Report for June.  This week, investors will be closely watching budget talks in Washington, DC as the August 2nd deadline for default draws near.  Fed Chairman Ben Bernanke will be testifying before Congress on Wednesday.  Retail Sales and the Producer Price Index will be released on Thursday, the Consumer Price Index will come out on Friday.  No key data will be released today.

Daily Market Update 7/7/11

Rates moved higher Thursday following the release of stronger than expected employment data.  This morning, payroll firm ADP estimated a net gain of 157,000 private sector jobs in June, far above forecast.  Weekly Jobless Claims fell to 418,000.  The European Central Bank (ECB) raised rates to fight inflation, as expected.  Stocks moved higher.  No other key data will be released today.

Daily Market Update 7/6/11

Rates inched lower Wednesday as mortgage-backed securities extended a rally following the downgrade of Portugal's debt yesterday.  China raised rates this morning to fight inflation, its fifth increase in recent months.  The Institute for Supply Management services index fell to 53.3, below expectations.  Readings above 50.0 indicate expansion in the services sector of the economy.  The Mortgage Bankers Association weekly purchase activity index rose by 5%, while the refinancing activity index fell by 9%.  Average reported 30-year fixed rates for the week ending July 1 rose to 4.69%, not including fees.  No other data will be released today.

Daily Market Update 7/5/11

Rates held steady Tuesday after having risen by about 1/4% last week.  Investors will be focusing on this Friday's Employment Report for June.  In economic news, Factory Orders rose 0.8% in May, a bit less than expected.  No other key data will be released today.

Daily Market Update 6/28/11

Mortgage rates continued their upward trend Thursday as the Fed's quantitative easing program is scheduled to end today.  Investors have grown less concerned about the risks posed by Greece following passage of new austerity measures, causing funds to be shifted from bonds to stocks over the past two days, pushing rates higher.  Investors have also been reluctant to add to bond positions until the impact of the decreased demand from Fed purchases is known.  In economic news, weekly Jobless Claims fell slightly to 428,000, above forecast.  The Chicago Purchasing Managers Index rose to 61.1, easily beating expectations.  Readings above 50.0 indicate expansion in the manufacturing sector of the economy.  Stocks moved sharply higher.  No other key data will be released today.

Daily Market Update 6/24/11

Mortgage rates were little changed Friday.  In economic news, May Durable Goods Orders rose 1.9%, beating forecast.  First quarter GDP was revised slightly higher to 1.9% from 1.8%.  Markets showed little reaction to the data.  Stocks moved lower.  Next week will be relatively quiet in terms of new data.  The Core PCE price index, a key measure of inflation, will be released on Monday.  The Treasury will hold auctions of 2-, 5-, and 7-year notes over three days beginning on Tuesday.  The market will close early on Friday for Independence Day weekend.  No other data will be released today.

Daily Market Update 6/23/11

Rates dipped Thursday as a sharp drop in global stock markets boosted Treasurys and mortgage-backed securities.  Continued uncertainty over the Greek debt situation and reluctance of the Fed to provide additional economic stimulus weighed heavily on stocks.  In economic news, weekly Jobless Claims rose to 429,000, above the consensus forecast.  New Home Sales fell 2.1%, a bit less than expected.  No other key data will be released today.

Daily Market Update 6/22/11

Rates inched lower Wednesday ahead of this afternoon's Fed statement and news conference.  The Federal Open Market Committee (FOMC) of the Federal Reserve is currently meeting to discuss monetary policy.  Analysts do not expect the Fed to raise rates or tighten policy while the Unemployment Rate is high.  Investors are likely to focus on the Fed's outlook for the economy.  Last night, Greek Prime Minister George Papandreou survived a confidence vote, clearing the way for further austerity measures.  The Mortgage Bankers Association weekly purchase activity index fell 2.8%, while the refinancing activity index declined by 7.2%.  Average reported 30-year fixed rates rose to 4.57%, not including fees.  Today's Fed Press Conference will take place at 2:15 PM.

Daily Market Update 6/21/11

Rates inched higher Tuesday as a global stock market rally hurt mortgage-backed securities.  In economic news, May Existing Home Sales fell by 3.8%, to the lowest level in six months, in line with expectations.  Investors are now turning their attention to tomorrow's FOMC meeting of the Fed.  While no rate changes are expected, analysts will be seeking clues about the timing of future shifts in monetary policy.  No other data will be released today.

Daily Market Update 6/20/11

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

Daily Market Update 6/17/11

Mortgage rates were little changed Friday.  Stocks moved higher on optimism that European officials are seeking quick action to stabilize Greece and the euro.  In economic news, Leading Indicators rose 0.8%, beating expectations.  Meanwhile, Consumer Sentiment declined to 71.8, below forecast.  The main event next week will be Wednesday's FOMC meeting of the Fed.  Also next week, May Existing Homes Sales will be released on Tuesday and New Home Sales on Thursday.  No other data will be released today.

Daily Market Update 6/16/11

Mortgage rates inched lower Thursday on mixed economic data.  May Housing Starts rose 4%, beating expectations.  Weekly Jobless Claims fell to 414,000, below the consensus forecast of 420,000.  The Philadelphia Fed index unexpectedly declined to -7.7.  Readings below zero indicate contraction in the manufacturing sector.  No other data will be released today.

Daily Market Update 6/15/11

Rates held steady Wednesday as investors attempted to analyze newly released economic data.  This morning, The Consumer Price Index (CPI) rose 0.2%, above the consensus forecast of +0.1%.  The closely-watched "Core" rate, which excludes food and energy components, rose 0.3%, also above expectations.  May Industrial Production increased by 0.1%, close to forecast, but the Empire State index declined by 7.8%, far below an expected increase of 10%.  Stocks fell sharply.  The Mortgage Bankers Association weekly purchase activity index rose 4.5%, while the refinancing activity index increased by 16.5%.  Average reported 30-year fixed rates fell to 4.51%, not including fees.  No other key data will be released today.

Daily Market Update 6/14/11

Rates inched higher Tuesday as a rally in stocks hurt mortgage-backed securities.  Today's economic data contained few surprises.  The May Producer Price Index (PPI) rose 0.2% from April and was 7.3% higher than one year ago.  Core PPI, which excludes volatile food and energy components, rose at a 2.1% annual rate, in line with expectations.  May Retail Sales fell 0.2%, the first monthly decline since June 2010, but better than the consensus forecast of -0.7%.  China's central bank raised reserve requirements for the sixth time this year in an effort to fight inflation.  No other key data will be released today.

Daily Market Update 6/13/11

Rates were little changed Monday in quiet trading.  No key economic data will be released today.

Daily Market Update 6/10/11

Mortgage rates were little changed Friday as mortgage-backed securities recovered from yesterday's late sell-off.  This morning, Federal Reserve Bank of New York President William Dudley suggested that economic growth will accelerate during the second half of 2011, but will seem "painfully slow" for many people.  May Import Prices rose 0.2%, the eighth consecutive monthly increase.  Stocks moved sharply lower.  Next week will be busy in terms of new economic data.  The Producer Price Index (PPI) and Retail Sales will be released on Tuesday, the Consumer Price Index (CPI) and Industrial Production will come out on Wednesday.  No other key data will be released today.

Daily Market Update 6/7/11

Rates moved slightly higher Tuesday as higher stock prices pressured mortgage-backed securities.  Results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 6/6/11

Mortgage rates inched higher Monday on growing concerns over the apparent lack of progress in negotiations to increase the federal debt ceiling.  Stocks and oil prices moved lower.  No key economic data will be released today.

Daily Market Update 6/3/11

Mortgage rates were little changed Friday as mortgage-backed securities recovered from Thursday's losses.  In economic news, the economy added 54,000 jobs in May, the lowest level in eight months, and far below forecast.  The Unemployment Rate rose to 9.1%.  Average Hourly Earnings, a proxy for wage growth, increased slightly more than expected.  Nearly all of the economic data in recent weeks has been weaker than forecast, raising concerns about the pace of growth, and helping to push mortgage rates lower.  Next week will be light in terms of new data.  Investors will likely focus on the results of 3-, 10-, and 30-year Treasury auctions over three days, beginning on Tuesday.

Daily Market Update 5/31/11

Mortgage rates were little changed Tuesday.  In economic news, the Chicago PMI manufacturing index declined to 56.6, below the consensus forecast of 62.5.  Readings above 50.0 represent an expansion of the manufacturing sector of the economy.  The Conference Board reported that Consumer Confidence fell to 60.8 in May from 65.4 in April.  Higher fuel prices and increased Jobless Claims were blamed for the decline.  The March Case-Shiller 20-city home price index fell by 0.8% from February and was 3.6% lower than one year ago, pushing home prices to their lowest levels since March 2003.  No other key data will be released today.

Daily Market Update 5/27/11

Rates were little changed Friday in volatile trading.  In economic news, the April Core PCE price index increased at a low 1.0% annual rate, in line with expectations.  Personal Income rose 0.4%, matching the consensus forecast.  Pending Home Sales plunged 11.6% to the lowest level in seven months.  Consumer Sentiment rose to 74.3, slightly higher than expected.  The big economic news next week will be Friday's release of Non-farm Payrolls and the Unemployment Rate for May.  No other key data will be released today.

Daily Market Update 5/26/11

Rates moved lower Thursday following the release of weaker than expected economic data.  Weekly Jobless Claims rose to 424,000, above the consensus forecast of 400,000.  First quarter GDP was unchanged at 1.8%.  Economists had expected an upward revision to 2.0%.  Stocks moved lower.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/25/11

Rates were little changed Wednesday in volatile trading.  This morning, the Commerce Department reported that April Durable Orders fell 3.6% from March, more than expected.  European Central Bank officials stated that Greece must adopt tough austerity measures to remain a member of the Euro zone.  The Mortgage Bankers Association weekly purchase activity index rose by 2%, while the refinancing activity index increased by 1%.  Average reported 30-year fixed rates rose to 4.69% last week.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/24/11

Rates edged higher Tuesday reflecting movement in mortgage-backed securities markets late Monday.  In economic news, April New Home Sales rose 7.3%, beating expectations.  No other key data will be released today.

Daily Market Update 5/23/11

Mortgage rates inched lower Monday as weakness in global stock markets boosted mortgage-backed securities.  Stocks fell sharply following downgrades of Greek and Italian debt by ratings agencies.  No economic data will be released today.

Daily Market Update 5/19/11

Mortgage rates moved higher Thursday reflecting a late sell off of mortgage-backed securities (MBS) on Wednesday.  Minutes from last month's FOMC meeting, released yesterday, indicate that Fed officials generally oppose additional quantitative easing measures and suggest that a return to a more normal monetary policy will include asset sales and rate hikes.  The Fed gave no indication of the timing of any policy tightening, but said the selling period for current MBS holdings may be five years.  In economic news, weekly Jobless Claims fell to 409,000, below forecast.  Existing Homes Sales declined unexpectedly by 0.8% to 5.05 million units in April.  Leading Indicators rose 0.3%, a bit less than expected.  No other key data will be released today.

Daily Market Update 5/18/11

Rates were little changed Wednesday in volatile trading.  No economic data will be released today, but the Fed will release the Minutes from last month's FOMC meeting at 2:00 PM.  The Mortgage Bankers Association weekly purchase activity index fell 3%, while the refinancing activity index rose by 13%.  Average reported 30-year fixed rates fell to 4.60% last week, not including fees.

Daily Market Update 5/17/11

Mortgage rates inched lower Tuesday following the release of weaker than expected economic data.  April Housing Starts declined 11% to an annual rate of 523,000 units.  Building Permits, a leading indicator, fell 4%.  Industrial Production was unchanged from March, below the consensus forecast of +0.5%.  Stocks moved lower.  No other key data will be released today.

Daily Market Update 5/16/11

Rates were little changed Monday.  In economic news, the Empire State regional manufacturing index declined to 11.9, below forecast, to the lowest level in five months.  The U.S. Treasury began tapping federal pension funds to avoid default as the nation reached its $14.294 trillion statutory debt limit.  Negotiations in Congress to increase the debt limit are ongoing.  No other key data will be released today.

Daily Market Update 5/13/11

Mortgage rates inched lower in volatile trading Friday.  This morning, the Consumer Price Index (CPI) for April rose 0.4%, slightly higher than expected.  The CPI increased 3.2% from one year ago, the highest annual rate since 2008.  Meanwhile, the closely-watched "Core" rate, which excludes food and energy components, rose at a tame 1.3% annual rate, well below the Fed's target range of about 2.0%.  Fed officials maintain that they expect the inflationary effects of higher oil prices to be transitory  Oil prices have risen about 45% over the past year.  Meanwhile, wage growth, a major factor in inflation levels, has remained subdued.  Key economic indicators due out next week include Industrial Production and Housing Starts on Tuesday, minutes from last month's Fed meeting on Wednesday, and Existing Home Sales on Thursday.  No other key data will be released today.

Daily Market Update 5/12/11

Mortgage rates dipped slightly on Thursday following a brief rally of mortgage-backed securities late Wednesday.  In economic news, the April Producer Price Index (PPI) rose 0.8% and was 6.8% higher than one year ago.  Core PPI, which excludes volatile food and energy components, rose 0.3%.  Both inflationary measures came in higher than forecast.  Retail Sales increased by 0.5% in April, below expectations.  Weekly Jobless Claims fell to 434,000, above the consensus forecast of 425,000.  Freddie Mac reported that average 30-year fixed rates fell to 4.63% with 0.7 points over the past week, the lowest level since December 9.  No other key data will be released today.

Daily Market Update 5/11/11

Mortgage rates moved higher Wednesday reflecting activity in mortgage-backed securities markets late yesterday.  This morning, the April Trade Deficit came in at $48.2 billion, a bit larger than forecast.  The Mortgage Bankers Association weekly purchase activity index rose by 7%, while the refinancing activity index increased by 9%.  Average reported 30-year fixed rates for last week fell to 4.67%, not including fees.  Results from today's 10-year Treasury auction will be released at 1:00 PM.  If you missed the opportunity to refinance when rates fell to 50-year lows last summer, you might want to consider our current 10- and 15-year conventional fixed rates, at 3.50% and 4.00%, respectively.  Please call for details.

Daily Market Update 5/10/11

Mortgage rates inched lower Tuesday reflecting gains in mortgage-backed securities markets late Monday.  This morning, April Import Prices excluding oil rose 0.6% from March, a bit more than expected.  Results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/9/11

Rates were little changed Monday in quiet trading.  No key economic data will be released today.

Daily Market Update 5/6/11

Mortgage rates were little changed Friday in volatile trading.  Mortgage-backed securities (MBS) gave up Thursday's late gains following a stronger than expected Employment Report.  The economy added 244,000 jobs in April, lifting stocks and hurting MBS markets.  The Unemployment Rate rose unexpectedly to 9.0% as previously discouraged job seekers re-entered the employment market.  Average Hourly Earnings, a proxy for wage growth, increased by 0.1% from March.  Key inflation data will be released next week, including the Producer Price Index on Thursday and the Consumer Price Index on Friday.  Retail Sales will also come out on Thursday.  No other data will be released today.

Daily Market Update 5/5/11

Mortgage rates inched lower Thursday following the release of weaker than expected jobs data.  Weekly Jobless Claims jumped to 474,000, far above the consensus forecast, but was partly due to one-time events that distorted the data.  Investors are more concerned that the four-week average shows a general weakening of the employment picture.  Productivity fell to 1.6%, beating expectations.  The European Central Bank (ECB) made no change in rates despite recent inflationary pressures.  The closely-watched Employment Report for April will be released tomorrow at 8:30 AM.  No other data will be released today.

Daily Market Update 5/4/11

Rates were mostly unchanged Wednesday in another day of quiet trading.  This morning, payroll firm ADP forecast an increase of 179,000 private sector jobs in April, below expectations.  The Institute for Supply Management services index fell to 52.8 in April from 57.3 in March.  Readings above 50.0 indicate expansion in the services sector of the economy.  The Mortgage Bankers Association weekly purchase activity index rose by 0.3%, while the refinancing activity index increased by 6%.  Average reported 30-year fixed rates last week fell to 4.76% not including fees.  No other key data will be released today.

Daily Market Update 5/3/11

Mortgage rates were little changed Tuesday in quiet trading.  March Factory Orders rose 3.0%, beating expectations.  No other data will be released today.

Daily Market Update 5/2/11

Mortgage rates were unchanged Monday as economic data was overshadowed by news of the death of Osama bin Laden.  Construction Spending rose a stronger than expected 1.4% in March.  An increase of 0.2% had been forecast.  The Institute for Supply Management manufacturing index fell to 60.4 in April, close to expectations.  No other key economic data will be released today.

Daily Market Update 4/29/11

Rates were little changed Friday as new economic data came in close to expectations.  The March Core PCE price index rose 0.1% from February and was a tame 0.9% higher than one year ago.  Personal Income increased 0.5%.  The Chicago PMI manufacturing index declined to 67.6, below forecast.  Consumer Sentiment fell slightly to 68.9 from 69.6.  No other data will be released today.  The big news next week will be Friday's Employment Report.  The Institute for Supply Management manufacturing index will come out on Monday.

Daily Market Update 4/28/11

Mortgage rates moved lower Thursday following the release of weaker than expected economic data. First quarter Gross Domestic Product (GDP) showed that the economy grew at a 1.8% annual rate, slightly below forecast. Weekly Jobless Claims rose to 429,000, well above expectations, and the third consecutive week above 400,000. Pending Home Sales increased by 5.1% in March, much better than expected. Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 4/27/11

Mortgage rates were little changed Wednesday. Mortgage-backed securities gave back yesterday's late gains in early trading ahead of this afternoon's Fed announcement and Chairman Ben Bernanke's first-ever press conference. The Fed will wrap up its two-day FOMC meeting and release a statement at about 12:15. The press conference will begin at 2:15. In economic news, March Durable Orders rose 2.5%, above the consensus forecast. A weaker dollar has made exports cheaper abroad, which has helped the US manufacturing sector. Results from today's $35 billion 5-year Treasury auction will be released at 1:00 PM. The Mortgage Bankers Association weekly purchase activity index fell by 14%, while the refinancing activity index declined by 1%. Average reported 30-year fixed rates last week fell to 4.80%.

Daily Market Update 4/26/11

Mortgage rates inched lower Tuesday on mixed economic data. April Consumer Confidence rose to 65.4 from 63.4 in spite of higher gas prices, beating expectations. The February S&P/Case-Shiller 20-city home price index declined by 0.2% from January and was 3.3% lower than one year ago. Results from today's $35 billion 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 4/25/11

Rates held steady Monday ahead of this week's Fed meeting. The Federal Open Market Committee (FOMC) of the Federal Reserve will meet on Wednesday to discuss monetary policy. Fed Chairman Ben Bernanke will hold a first-ever press conference after the meeting to discuss the Fed's announcement. Investors will be watching closely. In economic news, New Home Sales rose 11% to 300,000 annual units, beating expectations. No other key data will be released today.

Daily Market Update 4/21/11

Rates held steady Thursday following the release of mixed economic data. Weekly Jobless Claims declined to 403,000, but remained above 400,000 for the second consecutive week, and well above the consensus forecast of 390,000. Leading Indicators rose by 0.4%, slightly better than expected. The Philadelphia Fed Index, a survey of manufacturers in Pennsylvania, New Jersey, and Delaware, fell to 18.5, below expectations. Mortgage markets will close early today and will remain closed tomorrow in observance of Good Friday. No other key data will be released today.

Daily Market Update 4/20/11

Mortgage rates were largely unchanged Wednesday as mortgage-backed securities recovered from early losses. Existing Home Sales rose 3.7% in March to a 5.1 million annual rate, slightly above expectations. The Mortgage Bankers Association weekly purchase activity index rose by 10%, the first gain in over a month, while the refinancing activity index increased by 3%. Average reported 30-year fixed rates for last week fell to 4.83%, not including fees. No other economic data will be released today.

Daily Market Update 4/19/11

Rates inched lower Tuesday reflecting a late rally in mortgage-backed securities markets yesterday. In economic news, Housing Starts rose to 549,000 annual units, beating forecast. No other key economic data will be released today.

Daily Market Update 4/18/11

Mortgage rates were little changed Monday. Ratings agency Standard & Poor's downgraded the outlook for US debt to "negative" from "stable" this morning on concerns that "policy makers might not reach an agreement on how to address medium- and long-term budgetary challenges by 2013". Stocks and the dollar fell sharply, while gold prices hit a new record high. No economic data will be released today.

Daily Market Update 4/15/11

Rates improved slightly Friday following the release of the Consumer Price Index (CPI) inflation report. March CPI rose 0.5%, matching forecast, but the "core" CPI, which excludes food and energy, rose a tame 0.1%, less than expected. March Industrial Production increase by 0.8% from February, beating expectations. Capacity Utilization rose to the highest level since August 2008. Consumer Sentiment increased to 69.6 from 66.0. A small decrease had been expected. No other key economic data will be released today.

Daily Market Update 4/14/11

Mortgage rates eased slightly Thursday following yesterday's late rally in mortgage-backed securities. In economic news, weekly Jobless Claims rose to 412,000, above the consensus forecast of 385,000. The March Producer Price Index (PPI) increased by 0.7% from February, and was 5.8% higher than one year ago. Core PPI, which excludes volatile food and energy components, rose 0.3% for the month, slightly above expectations. Stocks moved lower. Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 4/13/11

Mortgage rates were little changed Wednesday. In economic news, March Retail Sales rose 0.4%, close to forecast. The Mortgage Bankers Association weekly purchase activity index fell by 5%, while the refinancing activity index decreased by 8%. Average reported 30-year fixed rates rose last week to 4.98%, not including fees. Results from today's 10-year Treasury auction will be released at 1:00 PM. The Beige Book, a survey of economic activity by the 12 regional Federal Reserve Banks, will be released at 2:00 PM.

Daily Market Update 4/12/11

Rates inched lower Tuesday as weakness in the stock market boosted bonds and mortgage-backed securities. In economic news, the February Trade Balance came in close to expectations. March Import Prices, excluding oil, rose 0.6%. Results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/31/11

Rates were little changed Thursday as economic data came in close to expectations. Weekly Jobless Claims fell to 388,000, slightly above forecast. The Chicago Purchasing Managers index fell to 70.6. A reading of 70.0 had been expected. Factory Orders declined by 0.1% in February, below the projected increase of 0.5%. Yesterday, U.S. District Judge Beryl Howell denied two motions for a temporary restraining order to delay implementation of the Fed's loan originator compensation rule scheduled to take effect April 1, while noting that the National Association of Mortgage Brokers (NAMB) had "sufficiently demonstrated that its members will likely be irreparably harmed by the implementation of the Board's Rule". Meanwhile, NAMB has filed an appeal and is moving forward with its lawsuit against the Fed.

Daily Market Update 3/29/11

Mortgage rates were mostly unchanged Wednesday in light trading. In economic news, payroll firm ADP forecast a net gain of 201,000 private sector jobs in March ahead of this Friday's Employment Report, a bit less than expected. The Mortgage Bankers Association weekly purchase activity index fell by 2%, while the refinancing activity index decreased by 10%. Average reported 30-year fixed rates rose to 4.92%, not including fees. Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/29/11

Rates held steady Tuesday in quiet trading. In economic news, Consumer Confidence fell to a 3-month low in March to 63.4 from 72.0 in February. The FDIC is expected to released its proposed definition of a Qualified Residential Mortgage today. The announcement will clarify which mortgages will be subject to risk retention by lenders, and may affect pricing of certain high loan-to-value loans. The National Association of Mortgage Brokers (NAMB) is seeking a temporary restraining order to block implementation of the new Fed rule regarding loan originator compensation scheduled to take effect April 1. The rule is based on a three-year old study of phone interviews with 35 "hypothetical" borrowers by Fed staff, yet will change the entire mortgage delivery system, raising costs and limiting options for consumers. Our belief is that the rule is all about increasing market share of the "too big to fail" financial institutions. For more information, log on to http://www.namb.org/. Results of today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/28/11

Mortgage rates inched higher Monday on mixed economic data. The February Core PCE price index, the Fed's preferred measure of inflation, rose 0.2% from January, matching expectations. The trend in the annual rate is moving higher, however. Personal Income increased by 0.3%, slightly below forecast. The February Pending Home Sales index, a leading indicator, rose by 2.1%, beating the consensus estimate of +0.5%. Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/25/11

Rates were little changed Friday, wrapping up one of the quietest weeks of the year in mortgage-backed securities markets. In economic news, fourth quarter 2010 GDP was revised higher to 3.1% from 2.8%, slightly above forecast. Consumer Sentiment came in close to expectations. The biggest economic event next week will be the Employment Report on Friday. Early estimates are for a net gain of 170,000 jobs in March. The FDIC is expected to release its definition of a Qualified Residential Mortgage (QRM) next week. The announcement will clarify which loans will be subject to risk retention rules, potentially raising the cost to consumers of certain high loan-to-value mortgages. No other data will be released today.

Daily Market Update 3/24/11

Mortgage rates were little changed in another day of quiet trading. In economic news, weekly Jobless Claims fell to 382,000, close to expectations. February Durable Goods Orders declined by 0.9%, well below the consensus forecast of +1.5%. Stocks moved higher. No other data will be released today.

Daily Market Update 3/23/11

Mortgage rates held steady Wednesday in quiet trading. February New Home Sales fell by 16.9% to an annual rate of 250,000 units, a new record low. Richard Fisher, President of the Federal Reserve Bank of Dallas and well-known inflation hawk, said the Fed is "going to have to be extremely wary" of inflationary pressures. He also warned that interest rates could rise if US lawmakers do not "get their act together" and map out a responsible fiscal plan. Congress has an "excessive addiction to debt spending and shoplifting our children's future", said Fisher. No other economic data will be released today.

Daily Market Update 3/22/11

Rates were little changed Tuesday in quiet trading. Stocks were mixed. No key economic data will be released today.

Daily Market Update 3/21/11

Mortgage rates moved higher Monday on supply concerns after the Treasury announced that it will begin selling its remaining $142 billion in agency-guaranteed mortgage-backed securities holdings. Beginning this month, the Treasury plans to sell up to $10 billion per month to wind down the emergency program put in place during the financial crisis. In economic news, the National Association of Realtors reported Existing Home Sales fell by 9.6% in February, much more than expected. The median sales price declined by 5.2% year-over-year to $156,100. No other key data will be released today.

Daily Market Update 3/18/11

Mortgage rates held steady Friday in the absence of any key economic data. Last night, the United Nations authorized the use of force against Libyan leader Gadhafi. As a result, Libya announced an end to all military actions, pushing stocks higher and pressuring mortgage-backed securities. Separately, the G7 nations intervened in currency markets to drive down the value of the yen to help boost the Japanese economy. Next week, Existing Home Sales will be released on Monday, New Home Sales on Wednesday, and Durable Goods Orders on Thursday.

Daily Market Update 3/17/11

Rates inched higher Thursday as a stock market rally pushed mortgage-backed securities lower. In economic news, weekly Jobless Claims decreased to 385,000. The February Consumer Price Index (CPI) rose 0.5%, slightly above forecast. Core CPI, which excludes food and energy, increased 0.2%, and was 1.1% higher than one year ago. Industrial Production fell by 0.1%. An increase of 0.6% had been expected. Leading Indicators rose 0.8%, close to expectations. No other key data will be released today.

Daily Market Update 3/16/11

Rates were little changed Wednesday as mortgage-backed securities held onto yesterday's gains. In economic news, February Housing Starts declined 23% from January to the lowest level in nearly two years. Building Permits, a leading indicator, fell 8% to a record low annual rate of 517,000 units. The Producer Price Index (PPI) jumped 1.6% in February, far above the consensus forecast. Core PPI, which excludes volatile food and energy components, rose a tame 0.2% from January and was 1.8% higher than one year ago. The Mortgage Bankers Association weekly purchase activity index declined by 4%, while the refinancing activity index rose by 1%. Average reported 30-year fixed rates fell to 4.79%, not including fees. No other data will be released today.

Daily Market Update 3/11/11

Mortgage rates were little changed Friday in volatile trading. Financial markets experienced wide swings as investors attempted to assess the impact of today's severe earthquake in Japan. In economic news, February Retail Sales rose by 1.0%, matching forecast. Consumer Sentiment fell to 68.2 from the previous reading of 77.5. Rising gas prices in recent weeks are being blamed for the sharp decline. Next week will be busy in terms of new data. The Federal Open Market Committee (FOMC) of the Fed meets on Tuesday, the Producer Price Index will be released on Wednesday, and the Consumer Price Index and Industrial Production will come out on Thursday. The Daily Market Update will be unavailable until Wednesday. I will be in Washington, DC on Monday and Tuesday meeting with our Congressional delegation regarding the Fed's loan originator compensation rule scheduled to take effect April 1. If you believe that increased competition drives down costs, improves service levels, and increases choices for consumers, join the fight. Please visit www.namb.org or www.naihp.org to learn more about what you can do to prevent the nation's largest financial institutions (those too big to fail) from taking over the mortgage industry.

Daily Market Update 3/10/11

Rates inched lower Thursday on weaker than expected economic data. Weekly Jobless Claims rose to 397,000, above the consensus forecast of 380,000. The Trade Deficit increased to $46.3 billion, well above expectations. Moody's downgraded Spain's sovereign debt rating, pushing global stock markets sharply lower. Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/9/11

Mortgage rates were unchanged Wednesday in quiet trading. The Mortgage Bankers Association weekly purchase activity index rose by 13%, while the refinancing activity index increased by 17%. Average reported 30-year fixed rates for the past week rose to 4.93%, not including fees. Results from today's 10-year Treasury auction will be released at 1:00 PM. The National Association of Mortgage Brokers (NAMB) is expected to file suit today against the Fed in an effort to prevent onerous new loan officer compensation rules from going into effect April 1. The National Association of Independent Housing Professionals (NAIHP) filed suit on Monday. The Fed rule will benefit large financial institutions at the expense of small banks, mortgage brokers, loan officers, and consumers.

Daily Market Update 3/8/11

Mortgage rates were little changed Tuesday in volatile trading. Mortgage-backed securities began the session with gains, turned lower as stocks rallied, then recovered their losses following a successful 3-year Treasury auction. No economic data will be released today.

Daily Market Update 3/7/11

Mortgage rates held steady Monday in quiet trading. No economic data will be released today. The National Association of Independent Housing Professionals (NAIHP) filed a lawsuit today against the Federal Reserve over the Fed's loan originator compensation rule scheduled to go into effect April 1. The National Association of Mortgage Brokers (NAMB) is expected to join the suit within days. The Small Business Administration (SBA) has requested a one-year delay in implementation of the rule to allow for further clarification and to study its long-term impact on consumers and small businesses. We view the rule as poorly conceived and grossly anti-competitive. If the rule is allowed to go forward in its present form, consumers can expect to pay higher mortgage costs and receive lower levels of customer service. Meanwhile, profits will soar among the industry's largest players (those "too big to fail"). For more information, please visit www.namb.org.

Daily Market Update 3/4/11

Mortgage rates inched lower Friday in extremely volatile trading following today's Employment Report for February. The economy added 192,000 jobs last month, close to expectations. The Unemployment Rate fell to 8.9% against a consensus forecast of 9.1%. Average Hourly Earnings, a proxy for wage growth, remained unchanged from January. Factory Orders rose 3.1% last month. An increase of 2.1% had been expected. Next week will be relatively quiet in terms of new economic data with the exception of Friday's report on Retail Sales. The Treasury will hold auctions of 3-, 10-, and 30-year securities over three days, beginning Tuesday. No other key data will be released today.

Daily Market Update 3/3/11

Rates faced upward pressure Thursday following the release of stronger than expected economic data. Weekly Jobless Claims fell to 368,000, well below forecast, and to the lowest level since May 2008. Productivity rose 2.6%. An increase of 2.3% had been expected. The European Central Bank (ECB) held rates unchanged, but the head of the ECB surprised investors by suggesting the central bank may raise rates at their next meeting in April to fight inflation. The Institute for Supply Management services index rose to 59.7. Readings above 50.0 indicate expansion in the service sector of the economy. Investors now turn their focus to tomorrow's release of the most important data of the month, the Non-farm Payrolls Report. Consensus forecast calls for a net job increase of 180,000 in February, with the Unemployment Rate seen rising to 9.1%. Any significant deviation from these estimates may cause volatility in the mortgage-backed securities market. No other key data will be released today.

Daily Market Update 3/2/11

Rates were little changed Wednesday in quiet trading. This morning, payroll service provider ADP projected an increase of 217,000 private sector jobs in February, above the consensus forecast of 160,000. Federal Reserve Chairman Ben Bernanke will be delivering a second day of his semi-annual testimony to Congress. The Mortgage Bankers Association weekly purchase activity index fell by 6%, while the refinancing activity index decreased by 7%. Average reported 30-year fixed rates fell to 4.84%, 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 3/1/11

Rates were little changed Tuesday following testimony by Fed Chairman Ben Bernanke before the Senate Banking Committee. Bernanke offered no indication that he was considering ending the Fed's $600 billion bond purchase program. Regarding oil prices, Bernanke said "The most likely outcome is that the recent rise in commodity prices will lead to, at most, a temporary and relatively modest increase in US consumer price inflation." In economic news, the Institute for Supply Management manufacturing index rose to 61.4, beating forecast. Construction Spending fell 0.7% in January, a bit more than expected. No other key data will be released today.

Daily Market Update 2/28/11

Mortgage rates were mostly unchanged Monday. The January Core PCE price index, the Fed's preferred measure of inflation, rose 0.1%, matching expectations. Personal Income increased 1.0%, the largest increase in over two years, but was due in part to a temporary reduction in the Social Security tax rate. The Chicago PMI manufacturing index rose to 71.2, beating forecast. Pending Home Sales fell 2.8% in January. A decrease of 3.0% had been expected. No other key data will be released today.

Daily Market Update 2/23/11

Rates held steady Wednesday in volatile trading. January Existing Home Sales rose unexpectedly to an 8-month high. The Mortgage Bankers Association weekly purchase activity index increased by 5%, while the refinancing activity index increased by 18%. Average reported 30-year fixed rates fell to 5.00%, not including fees. Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 2/22/11

Mortgage rates inched lower Tuesday as tension in the Middle East hurt stocks and helped mortgage-backed securities. Oil prices surged above $90 per barrel. In economic news, Consumer Confidence rose to 70.4 in February, the highest level in three years, beating forecast. Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 2/18/11

Rates faced upward pressure Friday as China again raised required reserve levels for banks in an effort to fight inflation. Investors have also expressed concern over the recent uptick in inflation data in the US. Yesterday the government reported a 0.4% rise in the Consumer Price Index (CPI) in January, the same rate as in December. The CPI has risen at an annual rate of 3.9% over the past quarter. Next week the Treasury will hold large auctions of 2-, 5-, and 7-year notes over three days, beginning on Tuesday. January Existing Homes Sales will be released on Wednesday, New Home Sales on Thursday. No key economic data will be released today.

Daily Market Update 2/17/11

Mortgage rates inched lower Thursday despite higher than expected inflation data. The January Consumer Price Index (CPI) rose 0.4% from December and was 1.6% higher than one year ago. Core CPI, which excludes volatile food and energy components, rose 0.2%. Weekly Jobless Claims increased to 410,000, close to expectations. Leading Indicators rose 0.1%, below forecast. No other key data will be released today.

Daily Market Update 2/16/11

Mortgage rates faced upward pressure Wednesday in volatile trading. The January Producer Price Index (PPI) rose 0.8%, well above forecast, and was 3.6% higher than one year ago. Core PPI, which excludes food and energy components, rose 0.5% last month, the largest increase since October 2008. January Housing Starts jumped 15%, beating expectations. Meanwhile, Building Permits, a leading indicator, fell by 10%. Industrial Production declined by 0.1%. An increase of 0.5% had been expected. The Mortgage Bankers Association weekly purchase activity index fell by 6%, while the refinancing activity index fell by 11%. Overall, mortgage demand declined to its lowest level since November 2008. Average reported 30-year fixed rates rose to 5.12%, not including fees. Minutes from last month's FOMC meeting will be released at 2:00 PM.

Daily Market Update 2/15/11

Rates held steady Tuesday, showing little reaction to today's economic data. January Retail Sales increased 0.3%, below the consensus forecast. Severe weather may have been a contributing factor to the disappointing results. Import Prices, excluding oil, rose 0.8%, stoking renewed fears of inflation. Stocks moved lower. No other data will be released today.

Daily Market Update 2/14/11

Rates were little changed Monday in light trading ahead of a busy week for economic news, beginning with tomorrow's report on January Retail Sales. Stocks were mixed. No key economic data will be released today.

Daily Market Update 2/11/11

Mortgage rates inched lower Friday as a flight to safety due to the situation in Egypt boosted mortgage-backed securities and hurt stocks. This morning, the Treasury released its recommendations for overhauling mortgage giants Fannie Mae and Freddie Mac. The two government-sponsored enterprises (GSE's) have already received over $150 billion of taxpayer bailout funds since 2008. Treasury Secretary Timothy Geithner offered three reform proposals with varying degrees of government involvement. Debate in Congress over the ultimate fate of the two GSE's will likely last for several months, perhaps longer. In economic news, Consumer Sentiment rose to 75.1, the highest level in eight months, but fell short of expectations. Next week will be busy in terms of key economic data. January Retail Sales figures will be released on Tuesday, the Producer Price Index, Industrial Production, and minutes from last month's FOMC meeting on Wednesday, and the Consumer Price Index on Thursday. No other data will be released today.

Daily Market Update 2/10/11

Mortgage rates were little changed Thursday. Weekly Jobless Claims fell to 383,000, the lowest level since July 2008, although some analysts believe winter storms may have distorted the totals. The Bank of England made no change in interest rates in spite of rising inflation. Stocks moved lower. Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 2/9/11

Rates moved higher Wednesday, reflecting a late sell off of mortgage-backed securities on Tuesday. Fed Chairman Ben Bernanke testifies before the House Budget Committee at 10:00 AM. Results from today's 10-year Treasury auction will be released at 1:00 PM. The Mortgage Bankers Association weekly purchase activity index fell by 1%, while the refinancing activity index decreased by 8%. Average reported 30-year fixed rates rose to 5.13% last week, the highest level since April 9, 2010. No key economic data will be released today.

Daily Market Update 2/8/11

Upward pressure on rates continued Tuesday. Overnight, China raised interest rates for the third time since October to fight inflation. This morning, Federal Reserve Bank of Richmond President Jeffrey Lacker called for the Fed to "quite seriously" re-evaluate its plan to purchase $600 billion of US Treasuries to stimulate the economy. He expressed concern that "inflation is capable of accelerating". Representative Paul Ryan, head of the House Budget Committee, called on the Fed to begin raising interest rates now. Tomorrow, Fed Chairman Ben Bernanke will testify before Congress on the central bank's monetary policy. Investors will be watching closely. No economic data will be released today.

Daily Market Update 2/7/11

Mortgage rates inched higher Monday as strength in the stock market hurt mortgage-backed securities. Investors are expressing growing concerns over the prospect of higher inflation in the months ahead. The yield curve, the difference between short- and long-term interest rates, has been rising as the Fed continues to hold short-term rates at historic low levels, while investors are pushing long-term rates higher. The rate difference between 30-year fixed and 5/1 adjustable rate mortgages is now at an all-time high. So-called "hybrid ARM's" have been attracting renewed interest among borrowers in recent weeks.

Daily Market Update 2/4/11

Mortgage rates jumped to their highest levels since May 2010 following an unexpected drop in the Unemployment Rate to 9.0% from 9.4%. An increase to 9.5% had been forecast. Overall, the Employment Report was mixed however, as the economy added just 36,000 jobs in January, far less than expected. January data tends to be the least reliable due to several factors, including bad weather, seasonal employment, and the holidays. Trading remains volatile. Stocks were mixed. No other data will be released today.

Daily Market Update 2/3/11

Mortgage rates moved higher Thursday on stronger than expected economic data. Weekly Jobless Claims fell to 415,000, below the consensus forecast of 425,000. Productivity rose 2.6%, beating expectations. The Institute for Supply Management services index rose to 59.4. Readings above 50.0 indicate expansion in the services sector of the economy. Factory Orders increased by 0.2%. A decline of 0.6% had been forecast. Fed Chairman Ben Bernanke will be holding a rare press conference this afternoon at 1:00 PM. The closely-watched Employment Report for January will be released tomorrow at 8:30 AM.

Daily Market Update 2/2/11

Mortgage rates were mostly unchanged Wednesday. This morning, the payroll firm ADP forecast a net gain of 187,000 private sector jobs in January, more than expected, ahead of Friday's Employment Report. The data appeared to have little immediate impact on financial markets. The Mortgage Bankers Association weekly purchase activity index rose by 10%, while the refinancing index increased by 12%. Average reported 30-year fixed rates rose to 4.81%, not including fees. No other data will be released today.

Daily Market Update 2/1/11

Mortgage rates moved slightly higher Tuesday as concerns about unrest in Egypt eased, helping stock markets and hurting mortgage-backed securities. In economic news, Construction Spending fell by 2.5%, far more than the consensus forecast of -0.5%. The Institute for Supply Management manufacturing index came in at 60.8, much better than expected. Readings above 50.0 indicate expansion in the manufacturing sector of the economy. No other key economic data will be released today.

Daily Market Update 1/28/11

Rates were little changed Friday, ending the week close to where they started. In economic news, preliminary Gross Domestic Product (GDP) estimates showed 3.2% growth in the economy during the fourth quarter of 2010, below the consensus forecast of +3.7%. However, consumer spending was stronger than expected, which is a positive sign for the economy in 2011. Consumer Sentiment rose to 74.2 in late January, beating expectations. Next week, the Chicago Purchasing Managers Index will be released on Monday, the Institute for Supply Management manufacturing index on Tuesday, and the closely-watched Employment Report on Friday. No other key data will be released today.