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.