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.