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.