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.