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.