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.