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.