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.