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.