Daily Market Update 12/21/12

Mortgage rates edged lower Friday as investors became increasingly concerned about the chances that a deal would be reached to avoid the "fiscal cliff" before year end.  Last night, Republicans in the House failed to agree on a more modest "Plan B" approach, which President Obama and Democrats in the Senate had already dismissed as inadequate.  In economic news, November Durable Goods Orders increased by 0.7%, beating forecast.  Personal Income rose 0.6%, above the consensus of 0.4%.  The Core PCE price index, the Fed's preferred measure of inflation, was unchanged in November, and was a tame 1.5% higher than one year ago.  Consumer Sentiment fell to 72.9, below expectations.  No other key data will be released today.  After today, I will be out until January 2nd.  Have a Merry Christmas and Happy New Year!

Daily Market Update 12/20/12

Mortgage rates held steady Thursday following the release of stronger than expected economic data.  Third quarter GDP was revised higher to show economic growth of 3.1%, well above the 2.7% level reported last month.  Weekly Jobless Claims rose to 361,000, close to forecast.  Leading Indicators declined 0.2%, matching expectations.  The Philadelphia Fed Index, a survey of manufacturers in the region, rose to 8.1.  A reading of -2.0 had been expected.  Readings above zero indicate expansion in the manufacturing sector.  Existing Home Sales jumped 5.9% to 5.04 million annual units, the highest level in three years.  No other key data will be released today.

Daily Market Update 12/19/12

Mortgage rates were little changed Wednesday after inching higher over the past few days.  In economic news, November Housing Starts declined 3% to an annual rate of 861,000, below forecast.  Meanwhile, Building Permits, a leading indicator, increased 4% to the highest level since July 2008.  Investors' main focus remains the "fiscal cliff" negotiations in Washington, where progress has been slow.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 12/17/12

Mortgage rates held steady Monday as weaker than expected economic data was offset by increased optimism that a deal will be reached to avoid the "fiscal cliff".  This morning, the Empire State Index declined to -8.1, well below the consensus forecast of +1.0.  Readings below zero indicate contraction in manufacturing in the region.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 12/14/12

Mortgage rates were little changed Friday as investors appear to be more focused on budget negotiations than on economic data.  This morning, the November Consumer Price Index (CPI) fell 0.3%, below forecast, but was 1.8% higher than one year ago.  Core CPI, which excludes volatile food and energy components, rose 0.1% and was 1.9% higher year-over-year.  Industrial Production jumped 1.1% in November, beating expectations.  No progress was reported on fiscal cliff negotiations following last night's meeting between President Obama and House Speaker Boehner.  Greece received approval for its next round of European Union aid.  No other key data will be released today.

Daily Market Update 12/13/12

Mortgage rates inched higher Thursday following yesterday's Fed announcement and stronger than expected employment data.  On Wednesday, the Fed announced it will purchase $45 billion per month of long-term Treasury securities beginning in January 2013.  The Fed also announced it will keep the Fed Funds Rate near zero until the Unemployment Rate falls below 6.5% or inflation tops 2.5%.  In economic news, weekly Jobless Claims fell to 343,000, well below forecast.  The November Producer Price Index (PPI) fell 0.8%, below the consensus of -0.5%, and was 1.5% higher than one year ago.  Core PPI, which excludes food and energy components, increased 0.1%.  Retail Sales rose 0.3%, which was close to expectations.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 12/12/12

Rates remained near record lows Wednesday ahead of this afternoon's Fed announcement, which is due out at 12:30 PM.  Fed Chairman Ben Bernanke will hold a press conference at 2:15.  The Fed's "Operation Twist" stimulus program is set to expire at the end of the year.  Under the program, the Fed sells short-term Treasurys and buys an equal amount of long-term Treasurys to help keep long term rates low.  Investors expect the Fed to announce a replacement program in which the Fed simply purchases long-term Treasurys in addition to the $40 billion of mortgage-backed securities now being purchased monthly.  In economic news, November Import Prices declined 0.9%, below the consensus forecast of -0.5%, mostly due to lower energy prices.  No other key data will be released today.

Daily Market Update 12/11/12

Mortgage rates were little changed Tuesday.  Stock prices rallied as Greece reached a debt buyback goal which was required to receive its next aid payment.  In the U.S., the Trade Deficit came in slightly lower than expected.  The Fed begins a two day meeting of the Federal Open Market Committee to discuss monetary policy.  Results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 12/10/12

Mortgage rates held steady Monday in quiet trading.  Investors are mostly looking ahead to Wednesday's Fed meeting.  No key economic data will be released today.

Daily Market Update 12/7/12

Rates inched higher Friday as stronger than expected employment data caused a decline in mortgage-backed securities.  The economy added 146,000 jobs in November, but the data from prior months was revised lower by 49,000.  The Unemployment Rate fell to 7.7%, the lowest level since December 2008, however the majority of the decline was due to workers leaving the labor force.  Average Hourly Earnings, a proxy for wage growth, rose 0.2%.  Consumer Sentiment fell sharply to 74.5, far below expectations.  The biggest economic event next week will be the two-day Fed meeting that will wrap up on Wednesday.  Investors will also remain focused on budget negotiations in Washington.  No other key data will be released today.

Daily Market Update 12/6/12

Rates remained near record lows Thursday ahead of tomorrow's Employment Report.  This morning, weekly Jobless Claims fell to 370,000, below the consensus of 380,000.  The European Central Bank (ECB) made no change in rates, as expected, but downgraded its forecast for 2013 GDP growth.  No other key data will be released today.

Daily Market Update 12/5/12

Rates were little changed Wednesday in quiet trading.  This morning, payroll firm ADP forecast private sector job growth of 118,000 in November, slightly below expectations.  Third quarter Productivity was revised higher to 2.9%, while unit labor costs fell by 1.9%.  Increased output per worker at a lower cost is good for the economy as a whole, but makes it more challenging for those seeking employment.  The Institute for Supply Management services index rose to 54.7, beating expectations.  Readings above 50.0 indicate expansion in the services sector of the economy.  Stocks were mixed.  No other key data will be released today.

Daily Market Update

Mortgage rates were unchanged Tuesday morning as no key economic data will be released today.  Investors are focusing on "fiscal cliff" negotiations in Washington, where there have been no new developments.

Daily Market Update 12/3/12

Mortgage rates held steady Monday on mixed economic data.  This morning, Construction Spending rose 1.4%, beating expectations.  The Institute for Supply Management manufacturing index fell to 49.5, short of forecast.  Readings below 50.0 indicate contraction in the manufacturing sector.  In Europe, Germany indicated that they might accept principal reductions on Greek debt and Spain formally requested funds to recapitalize its banks.  No other key data will be released today.

Daily Market Update 11/30/12

Mortgage rates remained virtually unchanged Friday following the release of weaker than expected economic data.  The October Core PCE price index, the Fed's preferred measure of inflation, rose 0.1%, and was a tame 1.6% higher than one year ago.  Personal Income was flat.  The Chicago PMI manufacturing index rose to 50.4, a bit below forecast.  Readings above 50.0 indicate expansion in the manufacturing sector.  Stocks  moved modestly higher.  The big news next week will be Friday's release of Non-farm Payrolls and the Unemployment Rate.  No other key data will be released today.

Daily Market Update 11/29/12

Rates were little changed Thursday as there were no major surprises in today's economic data.  Third quarter Gross Domestic Product (GDP) was revised higher to 2.7% from 2.0%, which was slightly below the consensus forecast.  Most of the increase was due to a buildup of inventories, which means there will likely be a lower production of goods in future quarters.  Weekly Jobless Claims fell to 393,000, close to expectations.  The National Association of Realtors reported the October Pending Home Sales index rose 5.2%, far exceeding an expected increase of 1.0%, to the highest level since March 2007.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/27/12

Rates held steady Tuesday as investors showed little reaction to newly released economic data.  This morning, October Durable Goods Orders were unchanged from September, beating expectations.  Consumer Confidence rose to 73.7, above forecast, to the highest reading since February 2008.  European officials reached an agreement to temporarily ease the debt burden on Greece.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/26/12

Mortgage rates inched lower following the extended holiday weekend as a decline in stocks lifted mortgage-backed securities.  With no economic data due out today in the U.S., investors are focusing on events in Europe.  European officials are trying to reach an agreement on providing the next round of aid to Greece.  Meanwhile, Spanish elections revealed increased support in some regions for candidates who favor leaving the EU.  Durable Goods Orders will be released tomorrow at 8:30 AM.

Daily Market Update 11/20/12

Mortgage rates held steady Tuesday morning.  In economic news, October Housing Starts increased by 4% to an annual rate of 894,000 units, well above forecast, to the highest level since July 2008.  Fed Chairman Ben Bernanke will be speaking at 12:15 PM.  No other data will be released today.

Daily Market Update 11/15/12

Rates held steady Thursday as a batch of economic data had little impact on mortgage-backed securities' prices.  Weekly Jobless Claims spiked to 439,000, far above the consensus forecast of 380,000, as the distortions from Hurricane Sandy were much larger than expected.  The October Consumer Price Index (CPI) rose 0.1%, matching expectations, and was 2.2% higher than one year ago.  The more closely-watched Core CPI, which excludes volatile food and energy components, increased 0.2%, above forecast.  The Empire State manufacturing index came in at -5.2, which was stronger than expected.  The Philly Fed manufacturing index came in at -10.7, far short of expectations.  Readings below 0.0 indicate contraction in the manufacturing sector.  No other key data will be released today.

Daily Market Update 11/14/12

Mortgage rates inched higher Wednesday in spite of the release of weaker than expected economic data.  The October Producer Price Index (PPI) fell 0.2%, as did the Core PPI, which excludes volatile food and energy components.  Core PPI was 2.1% higher than one year ago, down from an annual rate of 3.0% earlier this year.  Retail Sales declined 0.3% last month, although government officials suggested that the data was distorted by Hurricane Sandy.  The Mortgage Bankers Association weekly purchase activity index rose 11.0%, while the refinancing activity index jumped 13.1%.  Average reported 30-year fixed rates fell to 3.52%, not including fees, a new record low.  Detailed minutes from the October 24 Fed meeting will be released at 2:00 PM.

Daily Market Update 11/13/12

Mortgage rates were little changed Tuesday in volatile trading.  Investors appear to be focused primarily on uncertainty over events in Europe and the looming "fiscal cliff" in the U.S.  No key economic data will be released today.

Daily Market Update 11/9/12

Rates were little changed Friday morning as mortgage-backed securities gave back a portion of yesterday's gains.  In economic news, October Import Prices rose 0.5%, above expectations.  Consumer Sentiment came in at 84.9, a 5-year high, beating forecast.  Next week, the Producer Price Index, Retail Sales, and minutes from last month's Fed meeting will be released on Wednesday, the Consumer Price Index will come out on Thursday, and Industrial Production on Friday.  No other key data will be released today.

Daily Market Update 11/8/12

Rates were little changed Thursday in light trading.  This morning, weekly Jobless Claims fell to 355,000, below the consensus forecast of 365,000, but the figures may have been distorted by the effects of Hurricane Sandy.  The September Trade Deficit declined more than expected to $41.5 billion, the lowest level since December 2010.  Despite widespread riots and protests, Greek leaders passed a series of austerity measures required to receive additional aid.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/7/12

Mortgage rates inched lower Wednesday following the election results.  As expected, the Obama victory was positive for bonds and negative for stocks.  Separately, European Union forecasts for economic growth for the next two years were downgraded more than expected.  U.S. stocks moved sharply lower.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/6/12

Rates faced upward pressure Tuesday as a rally in stocks pushed mortgage-backed securities lower.  No key economic data will be released today.  Results from today's 3-year Treasury auction will be released at 1:00 PM.  Investors are mainly focused on today's election.  The outcome will have profound impact on the mortgage and housing industries, affecting the regulatory environment, the future of Fannie Mae, Freddie Mac, and FHA, Federal Reserve and Treasury leadership, and mortgage interest rates.  With the two major candidates in a statistical tie, voter turnout will likely determine the outcome.  Please vote (or don't complain about the winner)!

Daily Market Update 11/5/12

Mortgage rates inched lower Monday ahead of tomorrow's election.  Although the polls indicate a statistical dead heat, investors appear to be positioning themselves for an Obama victory and a divided Congress, an outcome which is seen as positive for bonds.  Stocks moved lower.  In economic news, the Institute for Supply Management services index fell to 54.2, a bit lower than expected.  No other key data will be released today.

Daily Market Update 11/2/12

Mortgage rates were little changed Friday following this morning's closely watched Employment Report.  After a brief sell off, mortgage-backed securities recovered from early losses.  The economy added 171,000 jobs in October, well above the consensus forecast of 125,000.  The Unemployment Rate increased to 7.9%, in line with expectations, due to an increase in the size of the labor force.  Average Hourly Earnings, a proxy for wage growth, was unchanged from September, which was weaker than expected.  Overall, the employment data was stronger than forecast.  Separately, Factory Orders rose 4.8% last month, slightly below expectations.  No other key data will be released today.  Next week's presidential election will likely overshadow all other economic news.

Daily Market Update 11/1/12

Rates inched higher Thursday as a rally in stocks pressured mortgage-backed securities.  This morning, payroll firm ADP projected an increase of 158,000 private sector jobs in October, slightly above forecast.  Third quarter Productivity rose 1.9%, close to expectations.  Weekly Jobless Claims fell to 363,000, below the consensus of 370,000.  The Institute for Supply Management manufacturing index came in at 51.7.  Readings above 50.0 indicate expansion in the manufacturing sector of the economy.  Consumer Confidence rose to 72.2, a bit less than expected.  Investors are now focusing on tomorrow's release of the October Employment Report, which comes out at 8:30 AM.  No other data will be released today.

Daily Market Update 10/31/12

Rates held steady Wednesday in quiet trading as U.S. stock and bond markets resumed trading.  In economic news, the Chicago Purchasing Managers Index rose to 49.9, short of forecast.  Readings below 50.0 indicate contraction in the manufacturing sector.  No other data will be released today.

Daily Market Update 10/30/12

Mortgage rates were unchanged Tuesday as U.S. financial markets remained closed for a second day due to Hurricane Sandy.  In economic news, the S&P/Case Shiller 20-city home price index rose 0.5% in August, in line with expectations, and were 2.0% higher than one year ago.  No other data will be released today.  Markets will resume operation on Wednesday.

Daily Market Update 10/29/12

Rates were little changed Monday in light trading as U.S. stock markets closed due to Hurricane Sandy.  Bond markets are scheduled to close at noon.  In economic news, the September Core PCE price index, the Fed's preferred measure of inflation, rose 0.1%, matching expectations.  Personal Income increased 0.4%, slightly below forecast.  No other key data will be released today.

Daily Market Update 10/26/12

Mortgage rates held steady Friday.  In economic news, preliminary third quarter Gross Domestic Product (GDP) figures showed economic growth of 2.0%, slightly above forecast, and up from an anemic 1.3% growth rate for the second quarter.  A 2% growth rate is generally consistent with a steady labor market, but insufficient for significant improvement.  Consumer Sentiment came in at 82.6, the highest level since September 2007, but below expectations.  Stocks were mixed.  Next week, the Core PCE price index, the Fed's preferred measure of inflation, will be released on Monday, the Institute for Supply Management manufacturing index will come out on Thursday, and the closely-watched Non-farm Payrolls and Employment Report for October will be released on Friday.  No other key data will be released today.

Daily Market Update 10/24/12

Mortgage rates faced upward pressure Wednesday ahead of this afternoon's Fed statement.  In economic news, New Home Sales rose 5.7% to 389,000 annual units, slightly above forecast, to the highest level in two years.  The Mortgage Bankers Association weekly purchase activity index fell by 8.3%, while the refinancing activity index declined by 12.9%.  Average reported 30-year fixed rates rose to 3.63%, not including fees.  The Fed announcement will come out at 2:15 PM.  No major changes in monetary policy are expected.

Daily Market Update 10/23/12

Rates inched lower Tuesday as mortgage-backed securities were boosted by weakness in stocks.  This morning, stock prices fell sharply following weaker than expected corporate earnings reports.  Separately, the New York Times reported that Fed Chairman Ben Bernanke will probably not seek a third term, regardless of who wins the presidential election.  Mitt Romney has already indicated he will replace Bernanke if he wins the Presidency.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/22/12

Rates were little changed Monday in quiet trading.  No economic data will be released today.  Investors are mostly looking ahead to this week's Fed meeting that wraps up on Wednesday.

Daily Market Update 10/19/12

Mortgage rates held steady Friday, ending about .125% higher for the week.  This morning, the National Association of Realtors reported Existing Home Sales declined by 1.7% in September, in line with expectations.  The big economic event next week will be a two day meeting of the Federal Open Market Committee of the Federal Reserve, beginning on Tuesday.  Also next week, Durable Goods Orders will come out on Thursday and advanced third quarter Gross Domestic Product (GDP) estimates on Friday.  No other key data will be released today.

Daily Market Update 10/12/12

Mortgage rates held steady Friday following the release of mixed inflationary data.  The September Producer Price Index (PPI) rose 1.1% from August, above expectations, driven mainly by higher energy prices.  Core PPI, excluding volatile food and energy components, was unchanged, which was lower than expected.  Consumer Sentiment came in at 83.1, beating forecast.  Next week's key economic figures include Monday's release of September Retail Sales and Tuesday's release of the Consumer Price Index and Industrial Production.  No other data will be released today.

Daily Market Update 10/11/12

Rates inched higher Thursday on stronger than expected economic data.  This morning, weekly Jobless Claims fell sharply to 339,000, the lowest level in more than four years.  September Import Prices rose 1.1% from August, mostly due to higher energy prices.  The August Trade Deficit came in close to forecast.  Stocks moved higher.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/10/12

Mortgage rates faced upward pressure Wednesday, reflecting market activity late yesterday.  In economic news, results from today's 10-year Treasury auction will be released at 1:00 PM.  The Fed's Beige Book, a survey of economic activity by the 12 regional Federal Reserve Banks, will be released at 2:00 PM.  The Mortgage Bankers Association weekly purchase activity index rose 2%, while the refinancing activity index fell 2%.  The composite index declined by 1.2%, as refinance applications represented 83% of the total.  The average conventional 30-year fixed rate rose to 3.56% with 0.39 "points".

Daily Market Update 10/9/12

Mortgage rates held steady Tuesday.  Treasurys benefited from falling stock prices, but mortgage-backed securities were little changed.  With no key economic data scheduled for release today in the U.S., investors turned their focus to events in Europe.  Protests against austerity measures and a visit by German Chancellor Angela Merkel turned violent in Greece.  Meanwhile, the International Monetary Fund (IMF) cut its global growth forecast to 3.3% this year, from 3.5% estimated in July.  A deepening recession in Europe and increased economic uncertainty in the U.S. were cited in the reduction.

Daily Market Update 10/8/12

Bond markets are closed today in observance of Columbus Day.

Daily Market Update 10/5/12

Mortgage rates faced upward pressure Friday following the September Employment Report.  The economy added 114,000 jobs last month, slightly below forecast, although the Unemployment Rate fell unexpectedly to 7.8%, the lowest level since January 2009.  The Unemployment Rate is based on a survey of households, while the Payrolls data is based on information collected from businesses.  Average Hourly Earnings increased 0.3%, beating expectations.  Stocks moved higher.  No other key data will be released today.

Daily Market Update 10/4/12

Mortgage rates were little changed Thursday in quiet trading.  Weekly Jobless Claims came in at 367,000, close to forecast.  August Factory Orders fell by 5.2%, a bit less than expected, led by a sharp decline in Transportation orders.  Detailed Minutes from the September 13 FOMC meeting of the Fed will be released at 2:00 PM.  The closely-watched Employment Report will be released tomorrow at 8:30 AM.

Daily Market Update 10/3/12

Mortgage rates held steady Wednesday despite stronger than expected economic data.  This morning, payroll firm ADP estimated an increase of 162,000 private sector jobs last month, above the consensus forecast of 140,000.  The Institute for Supply Management services index came in at 55.1, beating expectations.  Readings above 50.0 indicate expansion in the services sector of the economy.  The Mortgage Bankers Association weekly purchase activity index rose 3.9%, while the refinancing activity index jumped 19.6%.  Average reported 30-year fixed rates fell to 3.53%, not including fees.  Investors are now looking ahead to Friday's Employment Report.

Daily Market Update 10/2/12

Mortgage rates were little changed Tuesday in quiet trading.  No key economic data will be released today.

Daily Market Update 10/1/12

Mortgage rates held steady Monday on mixed economic data.  This morning, the Institute for Supply Management manufacturing index came in at 51.5, beating expectations.  Readings above 50.0 indicate expansion in the manufacturing sector of the economy.  Construction Spending fell 0.6%.  An increase of 0.5% had been forecast.  No other key data will be released today.

Daily Market Update 9/28/12

Rates stabilized Friday as mortgage-backed securities recovered most of yesterday's losses.  Investors remain primarily focused on events in Europe.  In economic news, the August Core PCE price index, the Fed's preferred measure of inflation, rose 0.1%, matching expectations.  Personal Income increased 0.1%, in line with forecast.  The Chicago Purchasing Managers Index fell unexpectedly to 49.7.  Readings below 50.0 indicate contraction in the manufacturing sector.  Consumer Sentiment came in at 78.3, slightly below forecast.  Next week's key data include Monday's release of the Institute for Supply Management manufacturing index, minutes from the September Fed meeting on Thursday, and the two most closely watched reports of the month, Non-farm Payrolls and the Unemployment Rate, on Friday.  No other key data will be released today.

Daily Market Update 9/27/12

Rates faced upward pressure Thursday following news that the European Central Bank may announce additional aid for Spain and China may soon launch new stimulus measures.  In economic news, weekly Jobless Claims fell to 359,000, below forecast, to the lowest level since July.  August Durable Goods Orders sank 13.2%, mostly due to volatile aircraft orders.  Final second quarter GDP unexpectedly dropped sharply to 1.3% from 1.7%.  Pending Home Sales fell by 2.6% in August.  An increase of 1.0% had been expected.  Freddie Mac reported average 30-year fixed rates of 3.40% with 0.6 "points" last week, the lowest on record.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/26/12

Mortgage rates were stable, to slightly lower Wednesday as concerns about Europe boosted mortgage-backed securities again today.  Protests in Spain and Greece have raised questions about the willingness of troubled countries to enact austerity measures.  In economic news, New Home Sales slipped 0.3% to 373,000 annual units, a bit below forecast.  The Mortgage Bankers Association weekly purchase activity index rose by 2.8%, while the refinancing activity index increased by 3.3%.  Average reported 30-year fixed rates fell 9 basis points to 3.63% (not including fees), a new record low.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/25/12

Rates inched lower Tuesday as increased concerns about Europe boosted mortgage-backed securities.  Political opposition in Germany to aid programs for weaker EU countries, a weak Spanish bond auction, and questions about Greek reforms overshadowed better than expected economic data in the U.S.  This morning, the July Case-Shiller 20-city home price index rose 0.4% from June, and was 1.2% higher than one year ago.  Consumer Confidence jumped to 70.3, well above the consensus forecast of 63.0.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/24/12

Mortgage rates held steady Monday in quiet trading.  No key economic data will be released today.

Daily Market Update 9/20/12

Rates inched lower Thursday on weaker than expected economic data, particularly in China.  In the U.S., weekly Jobless Claims came in at 382,000, slightly above forecast.  The Philly Fed manufacturing index fell 1.9%, beating expectations.  Leading Indicators declined by 0.1%, matching forecast.  Stocks moved lower.  No other key data will be released today.

Daily Market Update 9/19/12

Rates held steady Wednesday in volatile trading.  This morning, the Bank of Japan announced it will increase its level of monetary stimulus, following similar moves by the Federal Reserve and European Central Bank.  In the U.S., August Housing Starts rose 2% to an annual rate of 750,000 units, below the consensus forecast of 775,000.  Existing Home Sales jumped 7.8% to 4.82 million annual units, to the highest level in two years, beating expectations.  No other data will be released today.

Daily Market Update 9/18/12

Mortgage rates were little changed Tuesday.  Mortgage-backed securities drifted lower late yesterday, but have recovered those losses this morning.  No key economic data will be released today.

Daily Market Update 9/17/12

Rates held steady Monday as mortgage-backed securities (MBS) markets appeared to be settling down following two days of extreme volatility.  After a huge rally on Thursday, MBS gave back about half of their gains on Friday.  In economic news, the Empire State manufacturing index declined to -10.4, well below the consensus forecast of -3.0, to the lowest level since April 2009.  Readings below zero indicate contraction in the manufacturing sector.  No other data will be released today.

Daily Market Update 9/14/12

Mortgage rates inched lower Friday following yesterday's FOMC meeting.  The Fed announced it will implement "QE3" by purchasing up to $40 billion of mortgage-backed securities (MBS) monthly until labor markets improve.  The Fed also indicated it expects to maintain extremely low short-term rates until at least 2015.  The announcement produced a strong rally in MBS markets Thursday afternoon, although some of those gains have been given back this morning.  In economic news, the August Consumer Price Index (CPI) rose 0.6%, in line with expectations.  Core CPI, which excludes volatile food and energy components, increased 0.1%, a bit less than expected.  Retail Sales jumped 0.9%, slightly better than forecast, while Industrial Production fell 1.2%.  Consumer Sentiment reached its highest level in four months at 79.2, beating expectations.  Stocks moved modestly higher.  No other key data will be released today.

Daily Market Update 9/13/12

Rates were little changed Thursday ahead of this afternoon's Fed announcement, which may contain details of additional easing measures by the Federal Reserve.  In economic news, weekly Jobless Claims rose to 382,000, above expectations.  The August Producer Price Index (PPI) jumped 1.7% from July and was 2.0% higher than one year ago.  Higher gas prices accounted for much of the increase.  Core PPI, which excludes food and energy components, increased 0.2% in August.  The highly anticipated Fed announcement will be released at 12:30 PM.  Fed Chairman Ben Bernanke will hold a press conference at 2:15 PM.

Daily Market Update 9/12/12

Mortgage rates faced upward pressure Wednesday after a German court ruled in favor of a European Central Bank (ECB) aid program, allowing it to move forward.  Global stocks rallied, pushing mortgage-backed securities lower.  In economic news, August Import Prices rose 0.7%, below the consensus forecast of 1.5%.  The Mortgage Bankers Association weekly purchase activity index rose 8.1%, while the refinancing activity index jumped 11.9%.  Average reported 30-year fixed rates fell to 3.75%, not including fees.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/11/12

Mortgage rates held steady Tuesday in quiet trading.  The July Trade Deficit came in at $42.0 billion, slightly below forecast.  Stocks moved higher in anticipation of tomorrow's two-day FOMC meeting of the Fed.  An important German court decision on the legality of ECB programs is expected tomorrow.  Results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/10/12

Rates were little changed Monday.  No economic data will be released today in the U.S., so investors are focusing on events in Europe.  There have been reports this morning that inspectors have rejected some of the Greek government's austerity measures, which means that Greek leaders will need to agree on new measures to receive additional aid.  The Federal Open Market Committee (FOMC) of the Federal Reserve will be meeting on Wednesday and Thursday to discuss monetary policy.  Investors are expecting the Fed to announce new economic stimulus measures in the form of a third round of "quantitative easing" (QE3), whereby the Fed purchases long-term bonds and/or mortgage-backed securities (MBS) in an effort to keep rates low.  Also this week, the Producer Price Index will be released on Thursday,  the Consumer Price Index, Retail Sales, and Industrial Production will come out on Friday.  MBS markets may be volatile toward week's end.

Daily Market Update 9/7/12

Mortgage-backed securities rallied Friday morning following the release of disappointing job numbers.  The economy added just 96,000 jobs in August, far below forecast.  In addition, the data from prior months was revised lower.  The Unemployment Rate fell unexpectedly to 8.1%, but this was largely due to a decline in the labor force rather than an increase in employment.  Labor force participation fell to its lowest level since 1981.  Average Hourly Earnings, a proxy for wage growth, was unchanged from July.  As a result, investors raised their expectations that the Fed will take further measures to boost the economy.  Stocks were mixed.  No other key data will be released today.

Daily Market Update 9/6/12

Rates faced upward pressure Thursday on stronger than expected economic data and news of a plan by the European Central Bank (ECB) to purchase short-term debt from troubled European nations.  The new program, labeled "Monetary Outright Transactions" or MOT, will be "unlimited" in size, but will have conditions attached for countries that receive aid.  In economic news, payrolls firm ADP estimated an increase of 201,000 private sector jobs in August, well above forecast.  Weekly Jobless Claims fell to 365,000, a little lower than expected.  Stocks moved higher.  No other key data will be released today.

Daily Market Update 9/5/12

Mortgage rates were essentially unchanged Wednesday ahead of tomorrow's ECB meeting and Friday's Employment Report.  This morning, second quarter Productivity was revised higher to 2.2%, above the consensus forecast of 1.8%.  Last Friday the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, announced it will raise guarantee fees by an average of 10 basis points on November 1 for loans sold to the two agencies.  This is the third such increase, designed to shore up the finances of Fan and Fred, while bringing Agency rates more in line with "the level one might expect to see if mortgage credit risk was borne solely by private capital", according to FHFA Director Edward DeMarco.  Bottom line:  All else being equal, mortgage rates will increase November 1.  If you haven't already refinanced because you're waiting for rates to move lower, you may want to rethink that strategy.  No other key data will be released today.

Daily Market Update 9/4/12

Mortgage rates were little changed Tuesday following the release of weaker than expected economic data.  Construction Spending fell unexpectedly by 0.9% in July.  An increase of 0.5% had been forecast.  The Institute for Supply Management manufacturing index experienced its sharpest drop in three years last month to 49.6.  Readings below 50.0 indicate contraction in the manufacturing sector.  Stocks moved lower.  Rates may become increasingly volatile later this week, as the European Central Bank meets on Thursday to discuss additional aid measures to troubled European nations, and the most important economic data of the month, the Employment Report for August, will be released on Friday.  No other key data will be released today.

Daily Market Update 8/31/12

Mortgage rates were little changed Friday following Fed Chairman Ben Bernanke's speech in Jackson Hole, Wyoming.  While not announcing any new stimulus measures, Bernanke said the Fed "should not rule out the further use" of "nontraditional policies", such as bond purchases by the Fed, to stimulate the economy if conditions warrant.  Stocks rallied shortly after the speech, while mortgage-backed securities recovered from earlier losses.  In economic news, the Chicago Purchasing Managers Index came in at 53.0, a bit below forecast.  Readings above 50.0 indicate expansion in manufacturing.  Consumer Sentiment rose unexpectedly to 74.3.  Factory Orders increased 2.8% last month, beating expectations.  The big news next week will be Friday's Employment Report for August.  The financial markets will be closed on Monday in observance of Labor Day.  No other key data will be released today.

Daily Market Update 8/30/12

Rates held steady Thursday as mortgage-backed securities recovered from yesterdays losses on weaker than expected economic data.  This morning, the July Core PCE price index, the Fed's preferred measure of inflation, was unchanged from June and was 1.6% higher than one year ago.  Both readings were below forecast.  Weekly Jobless Claims were unchanged from last week's upwardly revised figures at 374,000, slightly above expectations.  Personal Income rose 0.3%, matching forecast.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/29/12

Rates were little changed Wednesday in another day of quiet trading.  In economic news, second quarter GDP was revised higher to 1.7%, in line with expectations.  The July Pending Home Sales index rose 2.4%, beating forecast, and providing further evidence of a modest recovery in the housing market.  Results from today's 5-year Treasury auction will be released at 1:00 PM.  The Beige Book, a survey of economic activity by the Federal Reserve's 12 Regional Banks, will be released at 2:00 PM.

Daily Market Update 8/28/12

Mortgage rates were little changed Tuesday following the release of mixed economic data.  This morning, the June S&P/Case-Shiller 20-city home price index rose 2.3% from May and was 0.5% higher than one year ago, the first annual increase since September 2010.  Consumer Confidence fell sharply to 60.6, the lowest reading since last November.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/27/12

Rates held steady Monday in quiet trading.  The big story this week will be speeches from central bank leaders at the Fed's annual economic policy symposium at Jackson Hole, Wyoming beginning on Friday.  No economic data will be released today.

Daily Market Update 8/24/12

Rates were little changed Friday as mortgage-backed securities held onto recent gains.  Mortgage rates improved by about 0.25% for the week.  In economic news, July Durable Goods Orders rose by a stronger than expected 4.2%, but declined by 0.4% excluding volatile aircraft orders.  Next week will be relatively quiet in terms of key economic data, with the exception of Thursday's Core PCE price index, the Fed's preferred measure of inflation.  No other data will be released today.

Daily Market Update 8/23/12

Rates eased slightly Thursday as mortgage-backed securities continued to rally on increased expectations that the Fed will take further easing action unless economic growth picks up sharply.  In economic news, weekly Jobless Claims rose to 372,000, above forecast.  New Home Sales increased to 372,000 annual units, beating expectations, and providing further evidence of a modest rebound in the housing market.  Stocks moved lower as German leaders expressed opposition to an extension of the time frame for Greece to implement reforms required by the bailout package.  No other data will be released today.

Daily Market Update 8/22/12

Rates inched lower Wednesday, driven by news out of Europe.  Reports that German Chancellor Merkel faces strong political opposition to providing additional aid to Greece has increased uncertainty in the region.  In economic news, Existing Home Sales rose by 2.3% to 4.47 million annual units, a bit below forecast.  The Mortgage Bankers Association weekly purchase activity index increased 0.9%, while the refinancing activity index fell 9.0%.  Average reported 30-year fixed rates rose 10 basis points to 3.86% with .42 "points".  Detailed minutes from the August 1 FOMC meeting of the Fed will be released at 2:00 PM.

Daily Market Update 8/21/12

Mortgage rates were little changed Tuesday in quiet trading.  Reports that German officials may support more lenient bailout terms for Greece boosted stocks.  No key economic data will be released today.

Daily Market Update 8/20/12

Mortgage rates held steady Monday.  Rumors that the European Central Bank (ECB) is working on the details of a major bond-buying program that would cap yields in troubled countries has caused some market volatility, although EU officials have denied the story.  No key data is scheduled for release today.

Daily Market Update 8/17/12

Mortgage rates were little changed Friday, but were .25% higher for the week.  In economic news, Consumer Sentiment rose unexpectedly to 73.6, the highest level in three months.  Leading Indicators increased 0.4%, slightly better than forecast.  The U.S. Treasury announced it will require mortgage giants Fannie Mae and Freddie Mac to reduce their investment portfolios by 15% per year and turn all future profits over to the Treasury to minimize losses to U.S. taxpayers.  Next week's key data includes the release of minutes from the recent FOMC meeting of the Fed and Existing Home Sales on Wednesday, New Home Sales on Thursday, and Durable Goods Orders on Friday.  No other data will be released today.

Daily Market Update 8/16/12

Rates stabilized Thursday after hitting their highest levels in three months yesterday.  In economic news, weekly Jobless Claims rose to 366,000, in line with expectations.  July Housing Starts declined by 1% to an annual rate of 746,000, below forecast, although Building Permits increased by 6% to the highest level in four years.  The Philly Fed index, a survey of manufacturers in the Philadelphia region, came in at -7.1, lower than expected.  Readings below zero indicate contraction.  No other key data will be released today.

Daily Market Update 8/15/12

Mortgage rates continued their upward trend Wednesday in spite of the release of weaker than expected economic data.  This morning, the July Consumer Price Index (CPI) was unchanged from June.  An increase of 0.2% had been forecast.  The more closely watched Core CPI, excluding food and transportation components, rose 0.1%.  The Empire State index, which measures manufacturing activity across the state of New York, fell unexpectedly to -5.9.  Readings below zero indicate contraction in the manufacturing sector.  Industrial Production rose 0.6%, slightly above forecast.  The Mortgage Bankers Association weekly purchase activity index fell 4.5%, while the refinancing activity index declined 5.1%.  Average 30-year fixed rates were unchanged last week, at 3.76%, not including fees.  Mortgage rates have now risen by about .375% since late July as the economic crisis in Europe has not worsened and investors have lowered their expectations of further Fed easing.  While the outlook for economic growth remains uncomfortably low, mortgage rates are primarily impacted by the change in expectations.  No other data will be released today.

Daily Market Update 8/14/12

Rates moved higher Tuesday as stronger than expected economic data hurt mortgage-backed securities.  July Retail Sales rose 0.8%, well above the consensus forecast of 0.2%.  The Producer Price Index (PPI) increased 0.3% last month, above expectations, while the Core PPI, which excludes volatile food and energy components, jumped 0.4%.  No other key data will be released today.

Daily Market Update 8/13/12

Mortgage rates were little changed Monday in quiet trading.  No key economic data will be released today.  Tomorrow, the Producer Price Index and Retail Sales figures will be released, and the Consumer Price Index and Industrial Production will come out on Wednesday.

Daily Market Update 8/9/12

Rates inched higher Thursday following the release of stronger than expected economic data.  Weekly Jobless Claims declined to 361,000, below the consensus forecast of 370,000.  The June Trade Deficit came in below expectations at $42.9 billion.  Mortgage giant Freddie Mac reported average 30-year fixed rates of 3.59% with 0.6 "points", the second consecutive weekly increase from a historic low of 3.49%.  Many of the larger banks have increased profit margins this year as mortgage demand has risen while competition has declined.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/8/12

Mortgage rates were little changed Wednesday in quiet trading.  Second quarter Productivity rose at a 1.6% annual rate, slightly above expectations.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/7/12

Mortgage rates faced upward pressure Tuesday.  Increased expectations for action by the European Central Bank boosted stocks and hurt mortgage-backed securities.  No economic data will be released today.

Daily Market Update 8/6/12

Rates were little changed Monday despite a moderate stock market rally.  It will be a relatively light week for economic news.  Investors will likely be focusing on events in Europe.  The Treasury will hold auctions of 3-, 10-, and 30-year notes over three days, beginning tomorrow.

Daily Market Update 8/3/12

Rates move higher Friday following the release of the July Employment Report.  The economy added 163,000 jobs last month, far more than expected.  The Unemployment Rate edged higher, however, to 8.3%.  Stocks rallied on the report, hurting mortgage-backed securities.  No other key data will be released today.

Daily Market Update 8/2/12

Rates were little changed Thursday in extremely volatile trading.  Yesterday, the Federal Reserve stopped short of launching a new round of economic stimulus, but said it will "provide additional accommodation as needed to promote a stronger economic recovery".  This morning, the European Central Bank (ECB) President stated that the ECB will prepare to purchase bonds in the coming weeks.  In the U.S., weekly Jobless Claims rose to 365,000, below the consensus forecast of 370,000.  Factory Orders fell 0.5%, far below expectations.  Non-farm Payrolls for July, the most highly anticipated economic data of the month, will be released tomorrow at 8:30 AM.  No other data will be released today.

Daily Market Update 8/1/12

Mortgage rates faced upward pressure Wednesday ahead of this afternoon's Fed statement.  Markets may be volatile as investors await possible news of another round of "Quantitative Easing" by the Federal Reserve (QE3).  In economic news, payroll firm ADP projected a gain of 163,000 private sector jobs in July, above the consensus forecast of 125,000.  Construction Spending rose 0.4%, a bit below expectations.  The Institute for Supply Management manufacturing index came in at 49.8, slightly lower than expected.  Readings below 50.0 indicate contraction in the manufacturing sector of the economy.  The Fed announcement will be released at 2:15 PM.

Daily Market Update 7/31/12

Mortgage rates inched lower Tuesday ahead of tomorrow's FOMC meeting.  Investors are hoping the Fed will announce another round of quantitative easing measures.  In economic news, the June Core PCE price index, the Fed's preferred inflation gauge, rose at a tame 1.8% annual rate, matching expectations.  Personal Income rose 0.5%, in line with forecast.  The Chicago Purchasing Managers Index came in at 53.7, a bit higher than the consensus.  Consumer Confidence rose unexpectedly to 65.9 from 62.0.  No other key data will be released today.

Daily Market Update

Rates were little changed Monday in quiet trading.  The rest of the week will be busy, but no key economic data will be released today.

Daily Market Update 7/27/12

Rates moved higher Friday as preliminary Gross Domestic Product (GDP) figures came in higher than expected.  The economy grew at a 1.5% annual rate in the second quarter, down from 2.0% in the first quarter, but better than the consensus forecast of 1.2%.  Meanwhile, Consumer Sentiment fell to its lowest level of the year.  Markets may be unusually volatile next week.  The Federal Open Market Committee of the Federal Reserve holds a two-day meeting to discuss monetary policy, beginning Tuesday.  It will release a statement Wednesday afternoon.  Weak second quarter growth may open the door to additional economic stimulus.  Also next week, the Employment Report for July, the most closely watched data of the month, will be released on Friday.  No other key data will be released today.

Daily Market Update 7/26/12

Mortgage rates faced upward pressure Thursday as news from Europe boosted stock prices and hurt mortgage-backed securities.  The President of the European Central Bank (ECB) said that the ECB will do "whatever it takes" to preserve the European Union.  Bond yields in troubled European countries declined sharply.  In the U.S., Durable Goods Orders rose 1.6% in June, beating expectations.  Weekly Jobless Claims fell to 353,000, well below forecast.  Pending Home Sales declined unexpectedly by 1.0%.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 7/25/12

Mortgage rates were little changed Wednesday as mortgage-backed securities gave back Tuesday's gains.  In economic news, New Home Sales fell by 8.4% in June to 350,000 annual units.  An increase to 375,000 had been expected.  The Mortgage Bankers Association weekly purchase activity index decreased 2.8%, while the refinancing activity index rose 1.8%.  Average reported 30-year fixed rates remained unchanged at 3.75%, not including fees.  No other key data will be released today.

Daily Market Update 7/23/12

Rates inched lower Monday as increased concerns about Spain hurt stocks and boosted Treasurys and mortgage-backed securities.  Yields on Spanish 10-year bonds climbed to their highest levels since the European Union was formed.  In addition, Greece may not meet the terms required to receive its next round of financial aid.  No key data will be released today.

Daily Market Update 7/20/12

Rates inched lower Friday as concerns about Spain hurt stocks and boosted Treasurys and mortgage-backed securities.  Protests against austerity measures escalated, and Spanish 10-year bond yields climbed above 7%.  No key economic data will be released today.  Next week, New Home Sales figures will come out on Wednesday.  Durable Goods Orders will be released on Thursday.  Also, the Treasury will auction 2-, 5-, and 7-year notes over three days, beginning Tuesday.

Daily Market Update 7/19/12

Mortgage rates remained near record lows Thursday following the release of weaker than expected economic data.  Weekly Jobless Claims spiked to 386,000, well above forecast.  June Existing Home Sales fell to 4.37 million units.  An increase to 4.65 million had been expected.  On a more positive note, the national median home price rose to $189,400, an increase of 7.9% year-over-year.  The Philly Fed index, a survey of manufacturing activity in the northeast region, came in at -12.9.  Readings below zero indicate contraction in the manufacting sector.  Leading Indicators fell 0.3%, below expectations.  No other key data will be released today.

Daily Market Update 7/18/12

Mortgage rates remained unchanged Wednesday as mortgage-backed securities recovered from yesterday's late selloff.  In economic news, June Housing Starts rose 7% to an annual rate of 760,000 units, beating forecast, although Building Permits, a leading indicator, fell short of expectations.  The Mortgage Bankers Association weekly purchase activity index declined by 0.1%, while the refinancing activity index surged 16.9%.  Average reported 30-year fixed rates fell to 3.74%, not including fees, another record low.  The Fed's Beige Book, a survey of economic activity by the 12 regional Federal Reserve Banks, will be released at 2:00 PM.

Daily Market Update 7/17/12

Mortgage rates held steady Tuesday in quiet trading.  The June Consumer Price Index (CPI) was unchanged from May, matching forecast, and was 1.7% higher than one year ago.  Core CPI, which excludes volatile food and energy components, rose 0.2% and was 2.2% higher than last June.  Industrial Production increased 0.4%, beating expectations.  Federal Reserve Chairman Ben Bernanke told the Senate Banking Committee that "economic activity appears to have decelerated somewhat during the first half of this year" and the Fed is "prepared to take further action as appropriate to promote a stronger economic recovery".  He further indicated that progress in reducing unemployment is likely to be "frustratingly slow".  Stocks declined following his comments.  No other key economic data will be released today.

Daily Market Update 7/16/12

Rates held steady Monday as weaker than expected Retail Sales boosted mortgage-backed securities.  June Retail Sales declined 0.5% from May.  An increase of 0.2% had been expected.  Stocks moved lower.  No other key data will be released today.

Daily Market Update 7/12/12

Mortgage rates were little changed Thursday.  This morning, weekly Jobless Claims fell sharply to 350,000, well below forecast, to the lowest level since March 2008.  Investors showed little reaction to the data due to possible distortions resulting from the July 4th holiday.  June Import Prices declined 2.7%, mostly due to lower oil prices.  Stocks moved lower.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 7/11/12

Back to work after a much needed vacation.  Mortgage rates have drifted lower over the past few days following last Friday's weak Employment Report for June.  This morning, the Trade Deficit came in very close to expectations.  The Mortgage Bankers Association weekly purchase activity index fell by 2.1%, while the refinancing activity index declined by 3.4%.  Average reported conventional 30-year fixed rates fell to 3.79%, not including fees.  Average FHA 30-year fixed rates dropped to 3.63%.  Both conventional and FHA average weekly rates represent all-time lows.  Results from today's 10-year Treasury auction will be released at 1:00 PM.  The Federal Reserve will release detailed minutes from last month's FOMC meeting at 2:00 PM.

Daily Market Update 6/27/12

Mortgage rates remained virtually unchanged Wednesday as investors showed little reaction to stronger than expected economic data.  Durable Goods Orders rose 1.1% in May, above the consensus forecast of 0.5%.  The May Pending Homes Sales index jumped 5.9%, offering further hope of stabilization in the housing market.  The Mortgage Bankers Association weekly purchase activity index fell 1.4%, while the refinancing activity index declined 8.3%.  Average reported 30-year fixed rates increased slightly to 3.88%.  Investors are now focused on the EU Summit taking place tomorrow and Friday.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 6/26/12

Rates were little changed Tuesday.  This morning, mortgage-backed securities gave back some of yesterday's gains.  Consumer Confidence fell to 62.0, a five-month low.  The Case-Shiller 20-city home price index was 1.9% lower than one year ago.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 6/25/12

Mortgage rates held steady Monday at near-record low levels.  In economic news, New Home Sales jumped by 7.6% in May to 369,000 annual units, beating expectations.  Stocks moved lower on concerns about the pace of global economic growth.  The Supreme Court is expected to rule on the legality of certain provisions of the Affordable Care Act this week, which may cause increased volatility in financial markets.  No other key data is expected today.

Daily Market Update 6/22/12

Mortgage rates held steady Friday in quiet trading, with no key economic data scheduled for release.  Yesterday, ratings agency Moody's downgraded the credit ratings of 15 major international banks, including several of the largest U.S. banks.  Investors showed little reaction to the news, which had been expected.  Next week, Durable Good Orders will be released on Wednesday and the Core PCE price index on Friday.  Also, the Treasury will auction 2-, 5-, and 7-year notes over three days beginning Tuesday.  The main focus of investors is likely to be the EU Summit, which begins next Friday.

Daily Market Update 6/21/12

Rates were little changed Thursday after mortgage-backed securities rebounded from yesterday's losses.  In economic news, weekly Jobless Claims came in at 387,000, above the forecast of 380,000.  The four-week average rose to the highest level since December.  The Philly Fed index, a survey of manufacturing activity in the region, fell to -16.6, far below expectations.  Readings below zero indicate contraction in the manufacturing sector.  Leading Indicators rose by 0.3%, slightly better than expected, while Existing Home Sales came in at an annual rate of 4.55 million, matching the consensus forecast.  No other key data will be released today.

Daily Market Update 6/20/12

Rates faced upward pressure Wednesday ahead of this afternoon's Fed announcement.  The Fed is expected to signal support for further easing of monetary policy, although there is wide disagreement over what actions the Fed will take.  The most likely action is an extension of the "Operations Twist" program, which involves selling short-term Treasuries and buying long-term Treasuries to push down long-term rates.  This program carries little inflation risk, but may have limited impact on the economy.  A much bigger step would be to announce a third round of quantitative easing (QE3), although the inflation risk would be considerably greater.  Rates may remain volatile throughout the day.

Daily Market Update 6/19/12

Mortgage rates were little changed Tuesday in quiet trading.  May Housing Starts fell 5% to an annual rate of 708,000 units, below expectations.  Meanwhile, Building Permits rose 8% to 780,000 units, the highest level since September 2008.  Stocks moved higher.  The Fed begins a two-day FOMC meeting today and will release its monetary policy statement tomorrow at 12:30 PM.  No other data will be released today.

Daily Market Update 6/18/12

Rates held steady Monday following the highly anticipated Greek elections.  Investors showed little reaction to the conservative party victory, which supports austerity measures and the EU bailout.  The consensus view is that essentially nothing changed.  While a victory by the radical leftist party would have likely had a negative outcome for the EU, the conservative party's win does not provide any fresh solutions to the problems.  No key economic data will be released today.

Daily Market Update 6/15/12

Mortgage rates edged lower Friday on increased expectations for additional monetary stimulus.  The Bank of England announced that it will flood its banking system with cheap funds in an attempt to boost economic growth and provide liquidity.  Spanish bond yields rose to record high levels.  Today's economic data in the U.S. came in below expectations.  May Industrial Production decreased slightly.  The Empire State index fell from 17.1 to 2.3, far below forecast.  Readings above zero indicate expansion in the manufacturing sector for the region.  Consumer Sentiment declined to a six-month low.  Rates may be volatile next week following this weekend's elections in Greece.  Also next week, the Federal Open Market Committee (FOMC) of the Federal Reserve will meet for two days beginning Tuesday to discuss monetary policy.  The Fed will issue a statement on Wednesday afternoon.  No other key data will be released today.

Daily Market Update 6/14/12

Mortgage rates were little changed Thursday in quiet trading.  In economic news, the May Consumer Price Index (CPI) declined 0.2% from April, and was 1.7% higher than one year ago.  Core CPI, excluding food and energy components, increased 0.2%, matching expectations, and was 2.3% higher year-over-year.  Weekly Jobless Claims rose to 386,000, above forecast.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 6/13/12

Rates held steady Wednesday as concerns about Europe and relatively weak economic data helped mortgage-backed securities recover from yesterday's late sell off.  The May Producer Price Index (PPI) declined 1.0%, a bit more than expected, led by lower energy prices.  Core PPI, which excludes food and energy components, rose 0.2%, matching forecast.  Retail Sales fell 0.2%, in line with expectations.  Stocks moved lower.  The Mortgage Bankers Association weekly purchase activity index rose 12.8%, while the refinancing activity index jumped 19.2%.  Average reported 30-year fixed rates edged higher, to 3.88%, not including fees.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 6/11/12

Rates inched higher Monday reflecting market activity late Friday.  This weekend, the European Union (EU) reached a $125 billion bailout plan for Spanish banks.  While the deal will ease short-term risk, it may have little long-term benefit.  Stocks moved higher.  No key economic data will be released today.

Daily Market Update 6/8/12

Mortgage rates inched lower Friday following a late rally in mortgage-backed securities on Thursday.  In economic news, the May Trade Balance declined slightly to $50.1 billion, in line with expectations.  Next week, the Producer Price Index and Retail Sales figures will be released on Wednesday, the Consumer Price Index on Thursday, and Industrial Production on Friday.  Also next week, the Treasury will hold auctions of 3-, 10-, and 30-year notes over three days, beginning Tuesday.  No other key data will be released today.

Daily Market Update

Mortgage rates inched higher Thursday morning, although mortgage-backed securities rallied following comments from Fed Chairman Ben Bernanke.  Speaking before the Joint Economic Committee in Washington, DC, Bernanke provided no specific commitment of Fed easing, but indicated the Fed is "prepared to take action...in the event that financial stresses escalate".  This morning, weekly Jobless Claims fell to 377,000, a bit below forecast.  Mortgage giant Freddie Mac reported average 30-year fixed rates hit another record low last week at 3.67% with 0.7 "points".  In a surprise move, China announced its first rate cut since 2008 in an effort to boost economic growth.  No other data will be released today.

Daily Market Update 6/4/12

Rates were little changed Monday, remaining near record lows.  This morning, the Commerce Department reported that April Factory Orders declined unexpectedly by 0.6%.  An increase of 0.1% had been forecast.  Friday's weaker than expected Employment Report increased concerns about the pace of global economic growth and raised investor expectations for additional quantitative easing by the Fed.  No other key data will be released today.

Daily Market Update 6/1/12

Disappointing economic data pushed mortgage rates to new lows on Friday.  This morning, the Employment Report showed just 69,000 net jobs created in May, while the Unemployment Rate rose to 8.2%.  Average Hourly Earnings, a proxy for wage growth, increased slightly.  April Personal Income fell short of forecast.  The April Core PCE price index, the Fed's preferred measure of inflation, rose at a 1.9% annual rate, a bit less than expected.  The Institute for Supply Management manufacturing index declined to 53.5, below expectations.  Stocks moved sharply lower.  No other key data will be released today.

Daily Market Update 5/31/12

Mortgage rates reached new lows Thursday following the release of weaker than expected economic data.  Weekly Jobless Claims rose to 383,000.  First quarter GDP was revised down to 1.9% from 2.2%.  The Chicago Purchasing Managers Index, a measure of manufacturing activity in the Midwest, fell sharply to 52.7, well below the consensus forecast of 57.0, to the lowest level since September 2009.  Stocks moved lower.  No other economic data will be released today.  The closely-watched Employment Report for May will be released tomorrow at 8:30 AM.

Daily Market Update 5/30/12

Mortgage rates inched lower Wednesday as concerns about Europe hurt stocks and boosted mortgage-backed securities.  Borrowing costs in Italy and Spain have moved significantly higher in recent days due to uncertainty over the banking sector.  In economic news, Pending Home Sales fell by 5.5% in April to the lowest level since December.  An increase of 1.0% had been expected.  The Mortgage Bankers Association weekly purchase activity index declined by 1.3%, while the refinancing activity index fell by 1.5%.  Average reported 30-year fixed rates hit another new low, at 3.91%, not including fees.  No other key data will be released today.

Daily Market Update 5/29/12

Rates were little changed Monday despite a stock market rally.  In economic news, the S&P Case-Shiller home price index declined 2.6% in the first quarter from one year ago, reaching its lowest level since 2002.  Consumer Confidence fell unexpectedly to 64.9.  A reading of 71.0 had been forecast.  The mortgage-backed securities market may be volatile this week as we approach Friday's key data, including the Employment Report, Core PCE price index, and ISM manufacturing index.  No other data will be released today.

Daily Market Update 5/24/12

Rates held steady Thursday, with markets showing little reaction to today's economic data.  Weekly Jobless Claims came in at 370,000, matching expectations.  April Durable Goods Orders increased 0.2%, below the consensus forecast of 0.5%.  Results from the 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/23/12

Mortgage rates improved slightly this morning as concerns about Greece hurt stocks and boosted mortgage-backed securities.  European Union officials have agreed to make preparations in case Greece decides to exit from the EU.  In economic news, New Home Sales rose by 3.3% last month to 343,000 annual units, beating forecast.  The Mortgage Bankers Association weekly purchase activity index fell 3.0%, while the refinancing activity index increase 5.6%.  Average reported 30-year fixed rates declined to 3.93%, not including fees.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/22/12

Mortgage rates inched higher Tuesday as stocks rose for a second consecutive day.  This morning, the National Association of Realtors reported Existing Home Sales increased by 3.4% in April to an annualized rate of 4.62 million units, the highest level in 2 years.  The median home price was $177,400, representing a solid 10.4% increase from April 2011.  Together, the data provides more evidence of stabilization in the housing market.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/21/12

Rates held steady Monday in quiet trading.  This weekend, G8 leaders expressed support for Greece to remain in the EU, but did not agree on any policy measures to ease Greek financial troubles.  No economic data will be released today.

Daily Market Update 5/18/12

Mortgage rates remained near record low levels Friday.  No economic data will be released today.  Next week, Existing Home Sales will be released on Tuesday, New Home Sales on Wednesday, and Durable Goods Orders on Thursday.  Also next week, the Treasury will auction 2-, 5-, and 7-year notes over three days, beginning Tuesday.

Daily Market Update 5/17/12

Mortgage rates held steady Thursday in quiet trading.  This morning, weekly Jobless Claims came in at 370,000, above the consensus forecast of 365,000.  The Philly Fed index, a business outlook survey of manufacturers in Pennsylvania, New Jersey, and Delaware, fell to -5.8, much worse than expected.  Readings below zero indicate contraction in the manufacturing sector.  Leading Indicators fell 0.1%, below expectations.  Freddie Mac reported that average 30-year fixed rates fell to a new record low of 3.79% with 0.7 "points" last week.  No other key data will be released today.

Daily Market Update 5/16/12

Rates were little changed Wednesday on mixed economic data.  April Housing Starts rose 3% to an annual rate of 717,000 annual units, beating forecast.  Building Permits fell 7%, a bit more than expected.  Industrial Production increased 1.1%, above the consensus of +0.5%, but the March data was revised lower.  Stocks moved higher.  The Mortgage Bankers Association weekly purchase activity index declined by 2.4%, while the refinancing activity index jumped 9.2%.  Average reported 30-year fixed rates fell to 3.96%, not including fees.  Minutes from the April 25 Fed meeting will be released at 2:00 PM.

Daily Market Update 5/15/12

Mortgage rates held steady Tuesday as today's economic data provided few surprises.  The April Consumer Price Index (CPI) was unchanged from March and was 2.3% higher than one year ago.  The Core CPI, which excludes food and energy components, rose 0.2%, matching expectations.  April Retail Sales increased 0.1%, slightly less than expected.  The Empire State index rose to 17.1, exceeding forecast.  Greek political leaders failed to establish a coalition government, leading to new elections.  No other data will be released today.

Daily Market Update 5/14/12

Mortgage rates hit new lows this morning as increased uncertainty in Europe has hurt stock markets and boosted mortgage-backed securities.  Greek political leaders remain deeply divided and have been unable to form a coalition government.  There is little support for the bailout package, which requires severe austerity measures.  As a result, the likelihood that Greece will leave the European Union has been increasing.  No key economic data will be released today.

Daily Market Update

Rates held steady Friday as a key inflation reading came in below expectations.  The April Producer Price Index (PPI) declined 0.2% from March and was 1.9% higher than one year ago, the smallest annual increase since October 2009.  Lower oil prices were a major reason for the decline.  Core PPI, which excludes food and energy components, rose 0.2%, matching forecast.  In other news, Consumer Sentiment rose to 77.8, beating expectations.  Bank stocks declined sharply after JP Morgan Chase reported a trading loss of at least $2 billion.  Next week's key data includes Tuesday's Retail Sales figures and Consumer Price Index, and Industrial Production on Wednesday.  Also, Wednesday, minutes from last month's FOMC meeting of the Fed will be released.  No other data will be released today.

Daily Market Update 5/10/12

Mortgage rates held steady Thursday.  This morning, weekly Jobless Claims fell slightly to 367,000 from an upwardly revised 368,000 last week, close to expectations.  Import Prices declined by 0.5% last month.  The March Trade Deficit rose to a record $51.8 billion, larger than forecast, mostly due to high oil prices.  Stocks moved higher after several days of consecutive losses.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/9/12

Mortgage rates were little changed Wednesday as investors focused on news from Europe.  Concerns over the stability of the banking sector have resulted in higher bond yields in larger countries such as Spain and Italy, making it more difficult to achieve economic growth.  Political opposition to austerity measures is strong, and there is growing disagreement about the best approach to solve Europe's financial problems.  Global stock markets moved lower.  On a more positive note, Fannie Mae announced first quarter net profit of $2.7 billion and said it will not be asking for additional bailout funds from the Treasury at this time.   The Mortgage Bankers Association weekly purchase activity index rose 3.4%, while the refinancing activity index increased by 1.3%.   Average reported 30-year fixed rates fell to 4.01%, not including fees.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/8/12

Mortgage rates were steady, to slightly lower on Tuesday as increased concerns about Europe, particularly Greece, hurt stocks and boosted mortgage-backed securities.  No key economic data will be released today.  Results from the 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/4/12

Rates inched lower Friday following a disappointing Employment Report for April.  The economy added just 115,000 jobs last month, far below the consensus forecast of 170,000.  The Unemployment Rate fell to 8.1%, largely due to people leaving the work force.  Average Hourly Earnings, a proxy for wage growth, were unchanged from March.  Oil and stock prices fell sharply.  The only key economic report due out next week will be Friday's release of the Producer Price Index.  The Treasury will auction 3-, 10-, and 30-year securities over three days beginning Tuesday.  No other data will be released today.

Daily Market Update 5/3/12

Mortgage rates were essentially unchanged Thursday ahead of tomorrow's key employment data.  In economic news, weekly Jobless Claims fell to 365,000, below the consensus forecast of 375,000.  First quarter Productivity declined by 0.5%, matching expectations.  The Institute for Supply Management services index fell to 53.5 from 56.0.  Readings above 50.0 indicate expansion the the services sector of the economy.  The European Central Bank (ECB) made no change in rates.  The ECB President stated that the ECB expects inflation to remain above the target rate in 2012, suggesting that rate cuts will be unlikely.  The closely-watched Non-Farm Payrolls report for April will be released Friday at 8:30 AM.

Daily Market Update 5/2/12

Mortgage rates held steady Wednesday as mortgage-backed securities recovered from yesterday's late sell off.  This morning, payroll firm ADP forecast an increase of just 119,000 private sector jobs in April, far short of expectations.  Factory Orders fell 1.5%, the largest monthly decline in three years, although a bit less than expected.  The Mortgage Bankers Association weekly purchase activity index rose 2.9%, while the refinancing activity index decreased 0.7%.  Average reported 30-year fixed rates rose to 4.05%, not including fees.  No other key data will be released today.

Daily Market Update 5/1/12

Mortgage rates were little changed Tuesday in quiet trading ahead of Friday's Employment Report.  This morning, the Institute for Supply Management manufacturing index rose unexpectedly to 54.8 from 53.4.  Readings above 50.0 indicate expansion in the manufacturing sector.  March Construction Spending edged up 0.1%, below expectations, while February was revised lower.  No other key data will be released today.

Daily Market Update 4/30/12

Rates were little changed Monday.  In economic news, the March Core PCE price index, the Fed's preferred measure of inflation, rose 0.2%, in line with expectations, and was 2.0% higher than one year ago.  Personal Income came in slightly higher than expected.  The Chicago PMI manufacturing index declined to 56.2, well below the consensus forecast of 61.0, and to the lowest level since November 2009.  Readings above 50.0 indicate expansion in the manufacturing sector.  Stocks were mixed.  No other key data will be released today.

Daily Market Update 4/27/12

Rates were little changed Friday.  In economic news, preliminary first quarter GDP figures indicated the economy grew at a 2.2% annual rate, below the consensus forecast of 2.5%.  Consumer Sentiment came in at 76.4, slightly better than expected.  In Europe, ratings agency S&P downgraded the debt of Spain.  Rates may be volatile next week, as several key economic indicators are scheduled for release.  On Monday, the Core PCE price index, the Fed's preferred measure of inflation, will be released.  The Institute for Supply Management manufacturing index will come out on Tuesday, and the month's most closely watched data, the Employment Report, will be released on Friday.  Have a great weekend!

Daily Market Update 4/26/12

Mortgage rates inched lower Thursday as weaker than expected European economic data boosted mortgage-backed securities.  In the US, weekly Jobless Claims came in at 388,000, above the consensus forecast of 375,000.  Pending Home Sales jumped 4.1% in March and was 12.8% higher than one year ago, providing further evidence of gradual stabilization in the real estate market.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 4/25/12

Rates inched higher Wednesday reflecting a late sell off of mortgage-backed securities on Tuesday.  In economic news, March Durable Goods Orders fell 4.2%, which was well below the consensus forecast of -1.5%.  The Federal Open Market Committee of the Federal Reserve made no change in interest rates, as expected, and gave no indication of any change in monetary policy.  Fed Chairman Bernanke will hold a press conference at 2:15 PM.

Daily Market Update 4/24/12

Mortgage rates were little changed Tuesday as the Fed began its two-day FOMC meeting.  In economic news, Consumer Confidence slipped to 69.2, slightly below forecast.  New Home Sales declined to 328,000 annual units in March, but February figures were revised higher.  The February S&P Case-Shiller 20-city home price index showed an annual decline of 3.5%, as average home prices fell to their lowest levels since 2002.  Results from today's 2-year Treasury auction will be released at 1:00 PM.  The Fed announcement will come out tomorrow afternoon.

Daily Market Update 4/19/12

Rates inched lower Thursday on weaker than expected economic data.  This morning, weekly Jobless Claims fell to 386,000, above the consensus forecast of 375,000.  Existing Home Sales declined to 4.48 million annual units, below expectations.  Leading Indicators rose by 0.3%, slightly better than forecast.  The Philly Fed index, a survey of economic activity in the Philadelphia region, fell to 8.5 from 12.5 last month.  Readings above zero indicate expansion in the manufacturing sector.  Stocks were mixed.  No other key data will be released today.

Daily Market Update 4/18/12

Rates were little changed Wednesday in quiet trading.  The Mortgage Bankers Association weekly purchase activity index declined by 11.2%, while the refinancing activity index surged 13.5%.  Average reported 30-year fixed rates fell to 4.05%, not including fees.  No key economic data will be released today.

Daily Market Update 4/17/12

Mortgage rates faced upward pressure Tuesday as a stock market rally hurt mortgage-backed securities.  In economic news, March Housing Starts declined by 6% to an annual rate of 654,000 units, below the consensus forecast of 700,000.  Building Permits increased by 5%, however, beating expectations.  Industrial Production was unchanged in March, which was weaker than expected.  No other key data will be released today.

Daily Market Update 4/5/12

Mortgage rates dipped Friday following the release of weaker than expected employment data.  The economy added 120,000 jobs in March, the fewest in five months, and well below forecast.  The Unemployment Rate, which is calculated differently, unexpectedly dropped to 8.2%.  The decline was largely due to people leaving the work force.  Average Hourly Earnings, a proxy for wage growth, increased at a 2.1% annual rate.  Next week, the Fed's Beige Book, a survey of economic activity by the 12 regional Federal Reserve Banks, will be released on Wednesday, the Producer Price Index will come out on Thursday, and the Consumer Price Index on Friday.  No other key data will be released today.  Mortgage-backed securities markets will close at noon ET in observance of Good Friday.

Daily Market Update 4/4/12

Rates moved higher Wednesday, but mortgage-backed securities (MBS) regained some ground lost late Tuesday.  Yesterday, MBS prices fell sharply following the release of minutes from the March 13 FOMC Meeting of the Fed, which showed little support for further easing.  Weakness in stocks has helped MBS recover some of those losses today.  In economic news, payroll firm ADP forecast private employment gains of 209,000 in March, close to expectations.  The European Central Bank made no change in rates, as expected.  The Institute for Supply Management services index came in at 56.0, slightly below forecast.  No other key data will be released today.

Daily Market Update 4/3/12

Mortgage rates held steady Tuesday in quiet trading.  In economic news, Factory Orders rose 1.3%, a bit less than expected.  Minutes from the March 13th FOMC meeting of the Fed will be released at 2:00 PM.

Daily Market Update 3/30/12

Rates were little changed Friday following the release of mixed economic data.  The February Core PCE price index, the Fed's preferred measure of inflation, rose 0.1%, matching expectations, and was 2.3% higher than one year ago.  The Fed targets a 2.0% inflation level.  Personal Income increased by 0.2%, a bit less than expected.  The Chicago Purchasing Managers Index fell to 62.2, below the consensus forecast of 63.0.  Consumer Sentiment rose to 76.2, beating expectations, to the highest level in more than a year.  Rates may be volatile next week.  The Institute for Supply Management manufacturing index will be released on Monday, minutes from the March FOMC meeting of the Fed will come out on Tuesday, and the most closely-watched economic data of the month, the Employment Report, will be released on Friday.

Daily Market Update 3/29/12

Mortgage rates held steady Thursday as today's economic data came in close to expectations.  Weekly Jobless Claims dipped to 359,000, slightly above forecast.  Final revisions to fourth quarter GDP showed no change, at 3.0%.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/28/12

Mortgage rates were little changed Wednesday.  February Durable Goods Orders rose 2.2%, below the consensus forecast of +3.0%.  The Mortgage Bankers Association weekly purchase activity index increased by 3.3%, while the refinance activity index fell by 4.6%.  Average reported 30-year fixed rates rose to 4.23%, not including fees.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/27/12

Mortgage rates inched lower Tuesday.  Mortgage-backed securities have now recovered about half of the losses experienced since the last Fed meeting on March 13th.  This morning, the S&P/Case-Shiller 20-city home price index reported a decline of 3.9% from one year ago.  Consumer Confidence fell to 70.2, a bit less than expected.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/26/12

Rates were little changed Monday despite a stock market rally.  This morning, Federal Reserve Chairman Ben Bernanke, in a speech before the National Association of Business Economics, said that the Fed should continue to hold rates at very low levels to help reduce the unusually high unemployment rate.  In economic news, the February Pending Home Sales Index fell unexpectedly by 0.5%.  An increase of 1.0% had been forecast.  No other key data will be released today.

Daily Market Update 3/23/12

Mortgage rates eased slightly on Friday, but finished about .125% higher for the week.  In economic news, New Homes Sales slipped by 1.6% to 313,000 annual units, below the consensus forecast of 320,000 units.  The median new home price rose to $233,700, a 6.2% increase from one year ago.  Next week's key data affecting interest rates include Durable Goods Orders on Wednesday and the Core PCE price index on Friday.  Also next week, the Treasury will auction 2-, 5-, and 7-year notes over three days, beginning Tuesday.  No other key data will be released today.

Daily Market Update 3/21/12

Rates remained volatile as mortgage-backed securities bounced back from yesterday's sharp losses.  In economic news, Existing Homes Sales declined 0.9% in February to an annual rate of 4.59 million units, below forecast.  The Mortgage Bankers Association weekly purchase activity index fell by 1.0%, while the refinancing activity index declined by 9.3%.  Average reported 30-year fixed rates rose to 4.19%, not including fees.  No other key data will be released today.

Daily Market Update 3/16/12

Mortgage rates were little changed Friday but have risen by about .25% since Tuesday's Fed statement.  In economic news, the February Consumer Price Index (CPI) rose 0.4% from January, matching expectations, and was 2.9% higher than one year ago.  Core CPI, excluding food and energy components, increased 0.1%, slightly less than expected.  February Industrial Production was unchanged from January, below the consensus forecast of +0.5%.  Consumer Sentiment fell unexpectedly.  Analysts blamed higher gas prices for the decline.  Next week, Housing Starts will be released on Tuesday, Existing Home Sales on Wednesday, and New Home Sales on Friday.  No other key data will be released today.

Daily Market Update 3/15/12

Rates continued moving higher Thursday as Treasurys and mortgage-backed securities sold off sharply yesterday in reaction to Tuesday's Fed announcement.  Mortgage rates are now at their highest levels since October.  Investors have expressed growing concerns about higher inflation.  Today's economic data brought no major surprises.  Weekly Jobless Claims fell to 351,000, slightly below forecast.  The February Producer Price Index (PPI) rose 0.4%, less than expected, and was 3.3% higher than one year ago.  Core PPI, which excludes volatile food and energy components, increased 0.2%, matching expectations.  The Philly Fed Index, a survey of economic activity in the Philadelphia region, came in at 12.5, in line with forecast.  No other key data will be released today.

Daily Market Update 3/14/12

Mortgage rates moved higher Wednesday following yesterday's Fed announcement.  Investors expressed increased concerns about inflation and lower expectations for additional quantitative easing by the Fed.  Mortgage-backed securities were also hurt by sharply higher stock prices.  In economic news, Import Prices rose by 0.4%, less than expected.  The Mortgage Bankers Association weekly purchase activity index jumped 4.4%, while the refinancing activity index fell 4.1%.  Average 30-year fixed rates remained unchanged at 4.06%, not including fees.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/13/12

Rates faced upward pressure Tuesday ahead of this afternoon's Fed statement.  In economic news, February Retail Sales rose 1.1%, beating forecast.  Stocks moved higher.  Results from today's 10-year Treasury auction will be released at 1:00 PM.  The Fed announcement will come out at 2:15 PM.

Daily Market Update 3/12/12

Rates inched lower Monday in quiet trading ahead of tomorrow's Fed meeting.  The Federal Open Market Committee (FOMC) of the Federal Reserve will be discussing monetary policy.  While no rate changes are expected, investors will be looking for indications of further economic stimulus.  Results from today's 3-year Treasury auction will be released at 1:00 PM. 

Daily Market Update 3/9/12

Rates held steady Friday as investors showed little reaction to the February Employment Report.  The economy added 227,000 jobs last month, while the Unemployment Rate remained at 8.3%.  Average hourly earnings, a proxy for wage growth, increased at a 1.9% annual rate.  The Trade Deficit came in higher than expected.  Private bondholders agreed to the proposed Greek bond swap deal, which was necessary for Greece to receive additional aid and avoid default.  No other key data will be released today.

Daily Market Update 3/8/12

Mortgage rates were little changed Thursday ahead of tomorrow's key employment data.  This morning, weekly Jobless Claims rose to 362,000, above the consensus forecast of 355,000.  Stocks were boosted as investors became more optimistic that the Greek debt swap deal will be accepted by most private bondholders.  Rates may be volatile tomorrow.  Results from the Greek debt swap offer are scheduled to be announced at 1:00 AM ET and the Employment Report for February will come out at 8:30 AM ET.  No other key data will be released today.

Daily Market Update 3/7/12

Rates held steady Wednesday as today's economic data contained few surprises.  Payroll firm ADP forecast a gain of 216,000 private sector jobs in February, close to expectations.  Fourth quarter Productivity was revised slightly higher, although unit labor costs increased at a faster than expected pace.  Stocks moved higher.  No other key data will be released today.

Daily Market Update 3/6/12

Rates inched lower Tuesday as concerns about the pace of global economic growth, rising oil prices, and the Greek debt deal have hurt stocks and lifted mortgage-backed securities.  Recent economic data from China and Europe has been weaker than expected.  No key data will be released today.

Daily Market Update 3/5/12

Rates were little changed Monday in quiet trading.  In economic news, the Institute for Supply Management services index rose to 57.3, beating expectations.  Readings above 50.0 indicate expansion in the services sector of the economy.  Factory Orders declined by 1.0%, a bit less than expected.  China announced that it will target a 7.5% growth rate in 2012, the slowest pace since 2005.  Stocks moved lower.  No other key data will be released today.

Daily Market Update 3/2/12

Mortgage rates were stable, to slightly lower this morning in quiet trading.  No economic data will be released today.  The big news next week will be Friday's Employment Report for February.  Also next week, the Institute for Supply Management services index and Factory Orders will come out on Monday, Productivity will be released on Wednesday.

Daily Market Update 3/1/12

Mortgage rates inched higher Thursday as investors continued to react to yesterday's comments from Fed Chairman Ben Bernanke.  In economic news, January Core PCE price index, the Fed's preferred measure of inflation, was 1.9% higher than one year ago.  Personal Income increased 0.3%, close to expectations.  Weekly Jobless Claims held steady at 351,000, slightly below forecast.  The Institute for Supply Management manufacturing index fell unexpectedly to 52.4 from 54.1.  Readings above 50.0 indicate expansion in the manufacturing sector.  Construction Spending declined by 0.1%.  An increase of 1.0% had been forecast.  No other key data will be released today.

Daily Market Update 2/29/12

Mortgage rates faced upward pressure Wednesday following comments by Fed Chairman Ben Bernanke.  In prepared testimony before the House Financial Services Committee, Bernanke said the recent rise in gasoline prices "is likely to push up inflation temporarily", although he indicated that monetary stimulus by the Fed remains warranted, and that inflation is likely to "remain subdued" in the longer term.  In economic news, fourth quarter GDP was revised higher to 3.0% from 2.8%.  The Chicago Purchasing Managers Index jumped to 64.0, beating forecast.  The Mortgage Bankers Association weekly purchase activity index rose 8.2%, while the refinancing activity index fell by 2.2%.  Average reported 30-year fixed rates declined to 4.07%, not including fees.  The Beige Book, a survey of economic activity by the Fed's 12 regional banks, will be released at 2:00 PM.

Daily Market Update 2/28/12

Mortgage rates held steady Tuesday following the release of mixed economic data.  January Durable Goods Orders tumbled 4.0%, below the consensus forecast for a decline of 1.0%, and the largest decrease since January 2009.  Consumer Confidence rose to 70.8, beating expectations.  The S&P/Case-Shiller 20-city home price index was 4.0% lower than one year ago.  No other key data will be released today.

Daily Market Update 2/27/12

Mortgage rates were little changed Monday in quiet trading.  In economic news, the National Association of Realtors reported Pending Home Sales increased 2.0% in January, beating forecast.  The data had little impact on mortgage-backed securities, as December sales figures were revised lower.  No other key data will be released today.

Daily Market Update 2/23/12

Mortgage rates were little changed Thursday.  Weekly Jobless Claims came in at 351,000, slightly below the consensus forecast of 355,000.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 2/22/12

Rates held steady Wednesday as mortgage-backed securities recovered from losses sustained late Tuesday.  In economic news, Existing Home Sales rose by 4.3% to 4.57 million annual units, below expectations.  The National Association of Realtors reported a 2% drop in the median home price in January to $154,700, the lowest level since November 2001.  The Mortgage Bankers Association weekly purchase activity index fell 2.9%, while the refinancing activity index declined by 4.8%.  Average reported 30-year fixed rates rose to 4.09%, not including fees.  The rare combination of low home prices and historically low interest rates have boosted home sales in recent months, particularly among investors and first-time buyers.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 2/21/12

Rates were little changed Tuesday in quiet trading.  This morning, European officials agreed to provide a $172 billion bailout package to Greece.  As a result, Greece will be able to avoid defaulting on debt maturing on March 20th.  Investors showed little reaction to the news.  Questions remain about whether Greek leaders will fully implement the deeply unpopular austerity measures called for in the deal.  No key economic data will be released today.

Daily Market Update 2/17/12

Mortgage rates inched higher Friday on renewed optimism that Greece will reach an agreement for a financial bailout package with the ECB.  In economic news, the January Consumer Price Index (CPI) rose 0.2% and was 2.9% higher than one year ago.  Core CPI, which excludes food and energy components, also rose 0.2%, above the consensus forecast of +0.1%.  Leading Indicators increased by 0.4%, close to expectations.  Mortgage-backed securities markets will be closed on Monday in observance of Presidents' Day.  No other key data will be released today.

Daily Market Update 2/16/12

Rates inched higher Thursday following the release of stronger than expected economic data.  Weekly Jobless Claims fell to 348,000, below forecast, to the lowest level since March 2008.  The Producer Price Index rose a tame 0.1%, although the more closely watched "core" rate, which excludes volatile food and energy components, jumped 0.4%.  The Philadelphia Fed manufacturing index came in at 10.2, slightly above expectations, while Housing Starts rose 1.5% to 699,000 annual units, beating the consensus forecast of 670,000.  No other key data will be released today.

Daily Market Update 2/15/12

Rates held steady Wednesday following the release of mixed economic data.  The Empire State index came in much higher than expected, while Industrial Production was flat in January.  Minutes from last month's FOMC meeting of the Fed will be released at 2:00 PM.  Congress appears to have reached an agreement on the extension of the payroll tax cut and unemployment benefits through year-end.  The deal will increase the annual federal budget deficit by an estimated $100 million for 2012.

Daily Market Update 2/14/12

Rates inched lower Tuesday as stocks fell on disappointing sales figures.  January Retail Sales rose 0.4%, far below the consensus forecast of +0.8%.  Import Prices increased 0.3%, matching expectations.  No other key data will be released today.

Daily Market Update 2/13/12

Mortgage rates were little changed Monday in quiet trading.  The market showed little reaction to the passage of a new austerity program by the Greek Parliament.  The situation there remains volatile, as Greek citizens rioted in the streets to protest the measures.  No key economic data will be released today, but the remainder of the week will be busy.  January Retail Sales figures will be released tomorrow, Industrial Production and minutes from last month's FOMC meeting will come out on Wednesday, the Producer Price Index on Thursday, and the Consumer Price Index on Friday.

Daily Market Update 2/9/12

Mortgage rates faced upward pressure Thursday.  This morning, Greek leaders announced they have reached an agreement on austerity measures that meet the demands of the ECB and IMF, paving the way for Greece to receive additional financial aid.  In the U.S., weekly Jobless Claims declined unexpectedly to 358,000, below the consensus forecast of 370,000.  The Justice Department will announce a $26 billion settlement agreement with the nation's five largest mortgage servicers over the "robo-signing" scandal, whereby faulty documents were used to expedite the foreclosure process.  $17 billion will be provided in the form of mortgage debt forgiveness, while $3 billion will be used to lower mortgage interest rates for delinquent borrowers.  Critics point out that responsible homeowners who are current in their payments will receive nothing from the deal, setting a dangerous precedent and creating a potential moral hazard.  While I am no fan of these five institutions, certain aspects of the settlement are disturbing and seem politically motivated.  No other key economic data will be released today.

Daily Market Update 2/8/12

Mortgage rates were little changed Wednesday in quiet trading.  Investors were mainly watching for progress on a Greek debt deal.  Stocks moved lower.  The Mortgage Bankers Association weekly purchase activity index rose 0.1% last week, while the refinancing activity index surged by 9.4%.  Average reported 30-year fixed rates fell to 4.05%, not including fees.  Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 2/6/12

Mortgage rates held steady Monday after inching higher last Friday on a stronger than expected Employment Report.  The economy added 243,000 jobs in January, while the Unemployment Rate dropped to 8.3%.  Trading has been quiet this morning.  No key data will be released today.

Daily Market Update 2/2/12

Rates inched lower Thursday ahead of tomorrow's Employment Report for January.  This morning, weekly Jobless Claims fell to 367,000, close to expectations.  Productivity rose by 0.7%.  Fed Chairman Ben Bernanke told members of the House Budget Committee that federal budget deficits are "unsustainable", and that "increasing level of government debt relative to national income runs the risk of serious economic consequences".  Really?  No other key data will be released today.

Daily Market Update 2/1/12

Mortgage rates were little changed Wednesday in quiet trading.  In economic news, payroll firm ADP estimated private sector job growth of 170,000 in January, in line with forecast.  Construction Spending rose by 1.5%, beating estimates.  The Institute for Supply Management manufacturing index came in at 54.1, below expectations.  President Obama is expected to announce details of a new government refinance proposal today, to be administered by the Federal Housing Administration (FHA).  The plan will require Congressional approval, which seems unlikely due to concerns about the current financial health of the FHA and potential costs to taxpayers.