Mortgage Network

Daily Market Update 2/16/12

2012-02-16T10:48:00.000-05:00

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

2012-02-15T10:16:00.000-05:00

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

2012-02-14T13:55:00.000-05:00

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

2012-02-13T11:09:00.000-05:00

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

2012-02-09T11:28:00.000-05:00

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

2012-02-08T11:44:00.000-05:00

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

2012-02-06T10:27:00.000-05:00

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

2012-02-02T11:33:00.000-05:00

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

2012-02-01T10:35:00.000-05:00

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.

Daily Market Update 1/31/12

2012-01-31T10:25:00.000-05:00

Mortgage rates inched higher Tuesday reflecting market activity that occurred late Monday. This morning, the Chicago Purchasing Managers Index fell to 60.2, below the consensus forecast of 63.0. Readings above 50.0 indicate expansion in the manufacturing sector of the economy. Consumer Confidence slid to 61.1, far below expectations. The November S&P Case-Shiller 20-city home price index fell 1.3% and was 3.7% lower than one year ago. No other key data will be released today.

Daily Market Update 1/30/12

2012-01-30T11:10:00.000-05:00

Rates inched lower Monday as concerns about Greece hurt stocks and lifted mortgage-backed securities. In economic news, the December Core PCE price index, the Fed's preferred measure of inflation, rose 0.2% from November and was 1.8% higher than one year ago. Although tame, the increase was above forecast. Personal Income increased 0.5% in December, close to expectations. This morning, while commenting on last week's Fed statement, Philadelphia Federal Reserve Bank President Charles Plosser indicated the Fed may need to raise rates before 2014. "It is not a commitment and shouldn't be interpreted as a commitment. It will depend on how the economy evolves", said Plosser.

Daily Market Update 1/26/12

2012-01-26T10:50:00.000-05:00

Mortgage rates moved lower Thursday following yesterday's Fed statement. The Federal Reserve indicated it would likely keep the Fed Funds rate at extraordinarily low levels until at least 2014. Today's economic data was mixed. Weekly Jobless Claims rose unexpectedly to 377,000. Durable Goods Orders increased by 3.0%, beating forecast. New Home Sales fell to 307,000, below expectations. Leading Indicators rose by 0.4%, a bit less than expected. Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 1/25/12

2012-01-25T11:14:00.000-05:00

Mortgage rates were little changed Wednesday ahead today's Fed announcement. The Federal Open Market Committee of the Federal Reserve wraps up a two day meeting to discuss monetary policy this afternoon. It will release a statement at 12:30 and hold a press conference at 2:15. No rate changes are expected, but the Fed will release its forecast for the Fed Funds Rate for the first time. Investors will also be looking for any indication of the Fed's plans for additional purchases of mortgage-backed securities. In economic news, December Existing Homes Sales fell by 3.5%, more than expected. Last night, President Obama proposed a new refinance program for borrowers who are current on their mortgages, regardless of who owns the loan. While few details were provided, sources say the Administration plans to ask Congress to allow the Federal Housing Administration (FHA) to insure refinances of underwater mortgages and remove barriers that have kept many borrowers from refinancing. Considering the current dire financial condition of the FHA, Congressional approval, particularly during an election year, seems extremely unlikely.

Daily Market Update 1/20/12

2012-01-20T10:42:00.000-05:00

Mortgage rates inched higher Friday in quiet trading. This morning, the National Association of Realtors reported December Existing Home Sales rose by 5% to an annualized rate of 4.61 million units, close to forecast. The increase is seen as further evidence of a gradually improving housing market. No other key data will be released today. Next week, the Federal Open Market Committee (FOMC) of the Federal Reserve will meet to discuss monetary policy. Investors will be focusing on Wednesday's Fed statement and press conference. Also next week, Durable Goods Orders will be released on Thursday and advanced 4th quarter GDP estimates on Friday. The Treasury will hold auctions of 2-, 5-, and 7-year notes over three days, beginning Tuesday.

Daily Market Update 1/19/12

2012-01-19T11:15:00.000-05:00

Mortgage rates faced upward pressure Thursday as weekly Jobless Claims declined to 352,000, far below forecast. In other economic news, the December Consumer Price Index (CPI) was unchanged from November, and 3.0% higher year-over-year. The closely-watched "Core" CPI, which excludes food and energy components, rose 0.1%, matching expectations. December Housing Starts fell 4.1%, more than expected. The Philadelphia Fed index, a survey of manufacturing activity in the region, rose to 7.3. A reading of 10.3 had been forecast. No other key data will be released today.

Daily Market Update 1/18/12

2012-01-18T10:47:00.000-05:00

Rates were little changed Wednesday following the release of mixed economic data. This morning, the December Producer Price Index (PPI) fell by 0.1%, below the consensus forecast of a 0.1% increase. Core PPI, which excludes volatile food and energy components, rose by 0.3%, above expectations, and was 3.0% higher than one year ago. Industrial Production increased by 0.4% in December, a bit less than expected. The Mortgage Bankers Association weekly purchase activity index rose 10.3%, while the refinancing activity index surged 26.4%, to the highest level since August. Average reported 30-year fixed rates fell to 4.06%, not including fees.

Daily Market Update 1/17/12

2012-01-17T13:38:00.000-05:00

Mortgage rates held steady Tuesday in quiet trading. This morning, the Empire State Index rose to 13.5, above forecast, to the highest level since last January. Stocks moved higher. No other key data will be released today.

Daily Market Update 1/13/12

2012-01-13T11:15:00.000-05:00

Rates edged lower as concerns over European debt hurt stocks and boosted Treasurys and mortgage-backed securities. This morning, France lost its triple-A credit rating from Standard & Poors. In economic news, December Import Prices declined 0.1%. The November Trade Deficit was larger than expected. Consumer Sentiment jumped to 74.0, the highest level since May. Stocks moved sharply lower. Next week, the Producer Price Index and Industrial Production will be released on Wednesday and the Consumer Price Index on Thursday. No other key data will be released today.

Daily Market Update 1/12/12

2012-01-12T10:58:00.000-05:00

Rates moved lower Thursday reflecting improvement in mortgage-backed securities prices late Wednesday. In economic news, Retail Sales rose 0.1% in December, well below forecast. Excluding autos, Retail Sales fell 0.2%, the first monthly decline since May 2010. Weekly Jobless Claims rose to 399,000, above the consensus of 375,000. The European Central Bank (ECB) made no change in rates, as expected. Stocks moved lower. Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 1/11/12

2012-01-11T11:24:00.000-05:00

Mortgage rates were little changed Wednesday in quiet trading. The Mortgage Bankers Association weekly purchase activity index rose by 8.1% while the refinancing activity index increased by 3.3%. Average reported 30-year fixed rates rose to 4.11% last week, not including fees. Results from today's 10-year Treasury auction will be released at 1:00 PM. 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 1/10/12

2012-01-10T11:21:00.000-05:00

Rates inched higher Tuesday as mortgage-backed securities faced pressure from higher stock prices. No key economic data will be released today, but results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 1/9/12

2012-01-09T11:33:00.000-05:00

Mortgage rates inched lower Monday, approaching historic lows. No key economic data will be released today. Those considering refinancing may want to start the process prior to February 1, when lenders will begin passing on higher Fannie Mae and Freddie Mac guarantee fees to borrowers. The fee increases, which equate to about .125% higher mortgage rates, resulted from the two month payroll tax cut extension enacted by Congress and signed by the President in December.

Daily Market Update 1/6/12

2012-01-06T11:39:00.000-05:00

Rates were little changed Friday following a stronger than expected Employment Report. The economy added 200,000 jobs in December, beating forecast. The Unemployment Rate declined unexpectedly to 8.5%, however the decline was partly due to the increase in the number of people dropping out of the labor force. Average Hourly Earnings, a proxy for wage growth, increased by 2.1% from one year ago. Stocks moved modestly lower. No other key data will be released today.

Daily Market Update 1/5/12

2012-01-05T11:01:00.000-05:00

Mortgage rates inched higher Thursday in volatile trading. This morning, payroll firm ADP estimated private sector job growth of 325,000 in December, doubling forecast. However, ADP has had a mixed record of accuracy with past predictions for the Employment Report, which is due out Friday. Weekly Jobless Claims fell to 372,000, close to expectations. The Institute for Supply Management services index rose to 52.6, slightly below forecast. Readings above 50.0 indicate expansion in the services sector of the economy. No other key data will be released today.

Daily Market Update 1/3/12

2012-01-03T11:28:00.000-05:00

Mortgage rates inched higher Tuesday as U.S. financial markets reopened following the New Year's holiday. Stocks moved higher on improved investor confidence in the global economy. In economic news, the Institute for Supply Management manufacturing index rose to 53.9 from 52.7, beating forecast. Readings above 50.0 indicate growth in the manufacturing sector. Minutes from the December 13th FOMC meeting of the Fed will be released at 2:00 PM. The big news for the week will be Friday's Employment Report.

Daily Market Update 12/23/11

2011-12-23T10:46:00.000-05:00

Mortgage rates inched higher Friday ahead of the extended holiday weekend. In economic news, November Durable Goods Orders rose 3.8%, which was nearly double the consensus forecast. Excluding volatile aircraft orders, however, the data fell short of expectations. The Core PCE price index, a key measure of inflation used by the Fed, increased 0.1% last month, and was a tame 1.7% higher than one year ago. New Home Sales rose by 1.6% to 315,000 annual units, matching forecast. Mortgage-backed securities markets will close early today. Seasons Greetings!

Daily Market Update 12/22/11

2011-12-22T10:59:00.000-05:00

Mortgage rates held steady Thursday despite the release of generally stronger than expected economic data. This morning, weekly Jobless Claims fell to 364,000, below the consensus forecast of 380,000, to the lowest level since April 2008. Third quarter GDP was revised lower to 1.8% from 2.0%. Consumer Sentiment rose to 69.9. A reading of 68.0 had been expected. Leading Indicators increased by 0.5%, beating forecast. No other key data will be released today.

Daily Market Update 12/21/11

2011-12-21T11:22:00.000-05:00

Mortgage rates inched higher Wednesday. In economic news, Existing Home Sales rose 4.0% in November. In a related story, the National Association of Realtors (NAR) lowered its estimated home sales figures from 2007 to present by 16.7%. The NAR cited a correction in its methods of calculation for the large downward adjustment. The Mortgage Bankers Association weekly purchasing activity index fell by 4.9%, while the refinancing activity index declined by 1.6%. Average reported 30-year fixed rates fell to 4.08%, not including fees, which was the lowest rate this year. Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 12/20/11

2011-12-20T10:39:00.000-05:00

Mortgage rates remained near historic lows on Tuesday. A rally in stocks caused mortgage-backed securities to give back Monday's late gains. In economic news, November Housing Starts increased by 9.3% to an annual rate of 685,000 units, easily beating the consensus forecast of 630,000. Results from today's 5-year Treasury auction will be released at 1:00 PM. The two-month payroll tax cut extension passed by the Senate remains stuck in the House. The Senate bill provides funding for the measure with a permanent increase on fees charged to borrowers by Fannie Mae and Freddie Mac. The bill is opposed by the National Association of Realtors, the National Association of Mortgage Brokers, the Mortgage Bankers Association, and the National Association of Home Builders.

Daily Market Update 12/16/11

2011-12-16T11:55:00.000-05:00

Mortgage rates were little changed Friday as new inflation data came in close to expectations. The November Consumer Price Index (CPI) was unchanged, below the consensus forecast of +0.1%, and was 3.4% higher than one year ago. Core CPI, which excludes volatile food and energy components, rose by 0.2%, a bit more than expected. Core CPI has been steadily climbing from the lows seen late last year. Next week we will get a picture of recent real estate sales activity. November Housing Starts will come out on Tuesday, Existing Home Sales on Wednesday, and New Home Sales on Friday. Durable Goods Orders will also be released on Friday. No other key data will be released today.

Daily Market Update 12/13/11

2011-12-13T11:43:00.000-05:00

Mortgage rates remained near record-low levels Tuesday ahead of this afternoon's Fed announcement. In economic news, Retail Sales rose 0.2%, below expectations. Results from today's 10-year Treasury auction will be released at 1:00 PM. The Federal Open Market Committee of the Fed is meeting today and will release its statement at 2:15 PM. No rate changes are expected, and investors are not anticipating any plans for additional stimulus at this time.

Daily Market Update 12/7/11

2011-12-07T11:34:00.000-05:00

Mortgage rates were little changed Wednesday in quiet trading. This morning, a German official expressed skepticism that all 27 countries in the European Union will agree to tighter budget controls. The Mortgage Bankers Association weekly purchase activity index rose 8.3% last week, while the refinancing activity index increased by 15.3%. Average 30-year fixed rates fell to 4.18%, not including fees. No key economic data will be released today.

Daily Market Update 12/5/11

2011-12-05T11:18:00.000-05:00

Mortgage rates held steady Monday. In economic news, Factory Orders declined 0.4%, matching forecast. The Institute for Supply Management services index came in at 52.0, slightly lower than expected. Investors are mainly focusing on developments in Europe, where there is increased optimism that European leaders will reach an agreement to help ease the sovereign debt crisis. Italy passed a package of new austerity measures over the weekend. No other key data will be released today.

Daily Market Update 12/2/11

2011-12-02T10:24:00.000-05:00

Rates were little changed Friday following the November Employment Report. The economy added 120,000 jobs last month, slightly less than expected, but revisions to prior months added another 72,000 jobs. The Unemployment Rate fell unexpectedly to 8.6%, although much of the decrease resulted from a 315,000 reduction in the number of people looking for work. Average Hourly Earnings, a proxy for wage growth, declined by 0.1%. Overall, the employment data beat forecast. Stocks moved higher. No other key data will be released today.

Daily Market Update 11/30/11

2011-11-30T11:18:00.000-05:00

Mortgage rates faced upward pressure Wednesday as stocks surged. This morning, major central banks around the world announced a joint program to lower the borrowing costs and boost liquidity for non-US banks. China lowered rates for the first time in three years in an effort to spur economic growth. Economic data in the US came in better than expected. The ADP forecast for private payrolls was for a net gain of 206,000 jobs. The Chicago Purchasing Managers Index rose to 62.6, well above the consensus forecast of 57.5. The Mortgage Bankers Association purchase activity index fell by 0.8%, while the refinancing activity index declined by 15.3%. Average reported 30-year fixed rates dipped to 4.21%, not including fees. No other key data will be released today.

Daily Market Update 11/29/11

2011-11-29T10:55:00.000-05:00

Mortgage rates inched higher Tuesday as Consumer Confidence rose to 56.0, its highest level since July. A reading of 42.5 had been expected. This morning, the S&P/Case Shiller 20-city home price index declined by 3.6% in September from one year ago. No other key data will be released today.

Daily Market Update 11/23/11

2011-11-23T14:31:00.000-05:00

Mortgage rates inched higher Wednesday in light trading ahead of the Thanksgiving holiday. October Durable Goods Orders fell 0.7%, but increased 0.7% excluding the volatile transportation component. Personal Income rose 0.4%, which was close to expectations. The October Core PCE price index, one of the Fed's preferred measures of inflation, increased 0.1%, matching forecast. Weekly Jobless Claims rose slightly to 393,000. The U.S. financial markets will be closed tomorrow. Happy Thanksgiving!

Daily Market Update 11/22/11

2011-11-22T10:28:00.000-05:00

Rates held steady Tuesday in quiet trading. Third quarter Gross Domestic Product (GDP) was revised lower to 2.0% from 2.5%. The decline was mostly due to shrinking inventories and is expected to have little impact on future growth. Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/21/11

2011-11-21T10:46:00.000-05:00

Mortgage rates were little changed Monday. Concerns about Europe and the inability of the Congressional 12-member "super committee" to reach an agreement drove stocks sharply lower. In economic news, Existing Home Sales rose by 1.4% in October, beating forecast. Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/18/11

2011-11-18T11:46:00.001-05:00

Mortgage rates remained steady Friday in quiet trading. Leading Indicators rose 0.9%, beating expectations. No other key economic data will be released today. Next week, revised third quarter GDP figures will come out on Tuesday. Durable Goods Orders, the Core PCE price index, and minutes from the November FOMC meeting of the Fed will be released on Wednesday. Also next week, the Treasury will hold auctions of 3-, 5-, and 7-year notes over three days beginning Monday. Financial markets will be closed on Thursday in observance of Thanksgiving.

Daily Market Update 11/17/11

2011-11-17T10:54:00.000-05:00

Rates were little changed Thursday as nervousness about Europe was offset by stronger than expected economic data in the US. European stocks fell after Spain's borrowing costs rose sharply. The average yield on their 10-year bond surged to 6.97% from 5.43% last month. In the US, weekly Jobless Claims fell to 388,000, below the consensus forecast, to the lowest level in seven months. October Housing Starts declined to an annual rate of 628,000, beating expectations. The Philadelphia Fed Index, a broad measure of manufacturing activity in the region, fell to 3.6. Readings above zero represent expansion in the manufacturing sector. No other key data will be released today.

Daily Market Update 11/16/11

2011-11-16T10:50:00.000-05:00

Rates moved lower Wednesday as investors remained focused on the European debt crisis. Bond yields in weaker European countries moved higher. In economic news, the October Consumer Price Index (CPI) fell 0.1%, slightly lower than expected, and was 3.6% higher than one year ago. Core CPI, which excludes volatile food and energy components, rose 0.1%, matching forecast. Industrial Production increased 0.7% in October, beating expectations. No other data will be released today.

Daily Market Update 11/15/11

2011-11-15T11:37:00.000-05:00

Mortgage rates were little changed Tuesday with no major news from Europe. October Retail Sales rose 0.5%, exceeding forecast. The Producer Price Index (PPI) declined 0.3%, which was lower than expected, and was 5.9% higher than one year ago. Core PPI, which excludes volatile food and energy components, was unchanged from September. No other key data will be released today.

Daily Market Update 11/14/11

2011-11-14T10:20:00.000-05:00

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

Daily Market Update 11/11/11

2011-11-11T10:57:00.000-05:00

Rates were unchanged Friday as mortgage-backed securities markets were closed in observance of Veterans Day. In economic news, Consumer Sentiment rose to 64.2, beating expectations, to the highest level since May. Stocks rallied following progress in Greece and Italy to curb the region's sovereign debt crisis. Next week, the Producer Price Index and Retail Sales will be released on Tuesday, and the Consumer Price Index and Industrial Production on Wednesday. No other key data will be released today.

Daily Market Update 11/10/11

2011-11-10T10:57:00.000-05:00

Mortgage rates inched higher Thursday following the release of stronger than expected economic data. Weekly Jobless Claims fell to 390,000, the lowest level since April. October Import Prices declined by 0.6%, and the Trade Deficit was smaller than the consensus forecast. Italian 10-year bond yields fell below the 7% level, easing investor concerns slightly. Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/9/11

2011-11-09T10:17:00.000-05:00

Mortgage rates inched lower Wednesday as mortgage-backed securities recovered from yesterday's losses. Investors remained focused on Italy's debt problems. Italian 10-year bond yields rose above 7%, a level widely considered to be the tipping point for sustainability. Global stock markets fell sharply. Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 11/7/11

2011-11-07T10:18:00.000-05:00

Mortgage rates were little changed Monday. Investors are likely to focus on developments in Europe this week, as no key economic data will be released in the U.S. Greek Prime Minister George Papandreou announced he will resign and there will be no public referendum on government-approved austerity measures. In Italy, Prime Minister Silvio Berlusconi may be facing the same fate, but has denied his resignation is eminent.

Daily Market Update 11/3/11

2011-11-03T10:43:00.000-04:00

Mortgage rates inched higher Thursday as news from Europe dominated financial markets. The European Central Bank (ECB) unexpectedly cut interest rates by 25 basis points (.25%) on growing concerns about Greece. With inflation in Europe running higher than the traditional comfort levels, investors were surprised by the move. Greek Prime Minister George Papandreou faces a confidence vote in Parliament tomorrow that will determine his political fate. In the U.S., third quarter Productivity increased at a 3.1% annual rate, above the consensus forecast. Weekly Jobless Claims fell to 397,000, close to expectations. Troubled mortgage giant Freddie Mac asked for an additional $6 billion of taxpayer funds after reporting a third quarter loss of $4.4 billion. Factory Orders rose by 0.3%, better than expected. No other key data will be released today.

Daily Market Update 11/2/11

2011-11-02T10:36:00.000-04:00

Mortgage rates inched lower Wednesday, reflecting yesterday's gains in mortgage-backed securities markets. In economic news, payrolls firm ADP forecast a net gain of 110,000 private sector jobs in October ahead of this Friday's Employment Report, beating expectations. This afternoon the Fed will hold a press conference at 2:15 to discuss its two-day FOMC meeting. Investors will be looking for signs of additional easing. Fed officials are reportedly divided about the appropriate course of action.

Daily Market Update 10/31/11

2011-10-31T11:56:00.000-04:00

Mortgage rates moved lower Monday as a decline in stock markets boosted mortgage-backed securities (MBS). In economic news, the Chicago Purchasing Managers Index fell to 58.4, below the consensus forecast, to the lowest level since May. U.S. securities firm MF Global Holdings filed Chapter 11 bankruptcy this morning, an apparent casualty of the European sovereign debt crisis. The Federal Reserve begins its two-day FOMC meeting tomorrow. Five of the ten voting members have voiced disagreement with recent Fed policy, three of whom believe the Fed has done too much to ease credit, two who believe the Fed has done too little. A statement will be released by the Fed on Wednesday. MBS markets may remain volatile all week. In addition to the Fed meeting, October's Employment Report will be released on Friday.

Daily Market Update 10/28/11

2011-10-28T11:05:00.000-04:00

Mortgage rates inched lower Friday as mortgage-backed securities recovered from yesterday's losses. This morning, the September Core PCE price index, one of the Fed's preferred measures of inflation, was unchanged from August and a modest 1.6% higher than one year ago. Personal Income increase by 0.1%, less than expected. Consumer Sentiment rose to 60.9, beating expectations. Next week is likely to be extremely volatile. The Federal Open Market Committee (FOMC) of the Fed will wrap up a two day meeting to discuss monetary policy on Wednesday. No rate changes are expected, but investors will be watching for news of additional stimulus plans. Non-farm Payrolls, the most closely-watched economic report of the month, will be released on Friday. Also next week, the ISM manufacturing index will come out on Tuesday. No other key data will be released today.

Daily Market Update 10/27/11

2011-10-27T10:19:00.000-04:00

Rates moved higher Thursday as European leaders announced a comprehensive aid package that eased investors' concerns. Stocks rallied, hurting bonds and mortgage-backed securities. In economic news, weekly Jobless Claims fell to 402,000, close to expectations. Preliminary third quarter GDP figures reported growth of 2.5%, matching forecast. September Pending Home Sales declined by 4.6%, much more than expected. Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/26/11

2011-10-26T10:16:00.000-04:00

Rates inched higher Wednesday, giving back yesterday's gains. Trading remained volatile as investors continued to focus on Europe. This morning, optimism that European leaders will agree on a comprehensive aid package lifted stocks and hurt mortgage-backed securities. In economic news, Durable Goods Orders fell by 0.8%, a bit less than expected. Excluding the transportation component, Durable Orders rose 1.7%, beating forecast. New Home Sales increased by 5.7% in September to 313,000 annual units. Unit sales of 300,000 had been expected. Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/25/11

2011-10-25T15:46:00.000-04:00

Mortgage rates moved lower Tuesday as comments from European officials suggested that a comprehensive aid package may be delayed. Healthier countries would be required to aid troubled countries in return for greater fiscal discipline. It appears Italy may be reluctant to make the deep spending cuts asked for in the plan. Stocks moved lower. In economic news, Consumer Confidence fell sharply to 39.8 from 45.4. An increase to 46.0 had been expected. No other key data will be released today.

Daily Market Update 10/24/11

2011-10-24T14:26:00.000-04:00

Rates inched higher Monday as strength in stock markets hurt mortgage-backed securities. Investors remain focused on Europe, with a big announcement expected on Wednesday. European officials are working on a broad aid package, and details will be released following Wednesday's summit. No key economic data will be released today.

Daily Market Update 10/17/11

2011-10-17T11:04:00.000-04:00

Rates were little changed Monday as mortgage-backed securities recovered from Friday's losses. In economic news, September Industrial Production increased 0.2%, matching forecast. Earlier today, German Finance Minister Wolfgang Schaeuble lowered expectations for an immediate solution to the Euro Zone's sovereign debt crisis. Stocks moved lower. No other key data will be released today.

Daily Market Update 10/14/11

2011-10-14T11:57:00.000-04:00

Rates were little changed Friday as mortgage-backed securities gave up Thursday's gains. In economic news, Retail Sales rose by 1.1%, well above the consensus forecast of +0.6%. September Import Prices increased by 0.3%. Consumer Sentiment fell to 57.5, below expectations. Next week will be busy in terms of new economic data. Industrial Production will be released on Monday, the Producer Price Index on Tuesday, and the Consumer Price Index on Wednesday. We will also get figures on Housing Starts and Existing Home Sales on Wednesday and Thursday. No other key data will be released today.

Daily Market Update 10/12/11

2011-10-12T10:17:00.000-04:00

Mortgage rates were little changed Wednesday, but have risen by about 3/8% over the past week, as investors have expressed renewed optimism over the European debt crisis and the September Employment Report. Minutes from last month's FOMC meeting of the Fed will be released at 2:00 PM. Results from today's 10-year Treasury auction will be released at 1:00 PM. The Mortgage Bankers Association weekly purchase activity index rose by 1.1%, while the refinancing activity index increased by 1.3%. Average reported 30-year fixed rates rose to 4.25%, not including fees.

Daily Market Update 10/7/11

2011-10-07T10:21:00.000-04:00

Rates moved higher Friday following the release of stronger than expected employment data. The economy added 103,000 jobs in September, well above the consensus forecast of +60,000. Also, the data for July and August were revised higher by 99,000. The Unemployment Rate remained at 9.1%. Average Hourly Earnings, a proxy for wage growth, increased by 0.2%. The relative strength of the report reduces the likelihood of another recession. Stocks moved higher. Next week, minutes from last month's FOMC meeting of the Fed will be released on Tuesday, Retail Sales will come out on Friday. No other key data will be released today.

Daily Market Update 10/6/11

2011-10-06T15:45:00.000-04:00

Mortgage rates inched higher Thursday ahead of tomorrow's closely-watched Employment Report. In economic news, weekly Jobless Claims rose to 401,000, slightly above expectations. Freddie Mac reported that average 30-year fixed rates fell last week to a record low 3.94% with 0.8 points. No other data will be released today.

Daily Market Update 10/5/11

2011-10-05T13:55:00.000-04:00

Rates inched higher Wednesday following the release of stronger than expected economic data. This morning, payroll firm ADP estimated a net gain of 91,000 private sector jobs in September ahead of Friday's Employment Report, beating forecast. The Mortgage Bankers Association weekly purchase activity index fell by 1%, while the refinancing activity index decreased by 5%. Average reported 30-year fixed rates declined to 4.18%, not including fees. No other key data will be released today.

Daily Market Update 10/4/11

2011-10-04T12:10:00.000-04:00

Mortgage rates were little changed Tuesday in volatile trading. Factory Orders declined 0.2% in August, a bit more than expected. Fed Chairman Ben Bernanke testified before the Joint Economic Committee in Congress this morning, saying the Fed is prepared to take additional steps to help boost the economy. Meanwhile, two regional Federal Reserve Bank presidents and well-known inflation hawks, Jeff Lacker and Richard Fisher, expressed concern that additional Fed easing could lead to inflation and cause more harm than good. Stocks moved lower. No other key data will be released today.

Daily Market Update 9/30/11

2011-09-30T11:23:00.000-04:00

Rates moved lower Friday as a decline in the stock market boosted mortgage-backed securities. In economic news, the Core PCE, one of the Fed's preferred measures of inflation, rose 0.1% in August, a bit less than expected. Personal Income fell 0.1%, below the consensus forecast for an increase of 0.1%. The Chicago Purchasing Managers Index rose to 60.4, beating expectations. Consumer Sentiment came in at 59.4, above forecast. Next week, the big economic news will be Friday's Employment Report. No other key data will be released today.

Daily Market Update 9/29/11

2011-09-29T10:23:00.000-04:00

Mortgage rates were little changed Thursday despite the release of stronger than expected economic data and a stock market rally. The final reading for second quarter GDP was revised higher to 1.3% from 1.0%. Weekly Jobless Claims fell to 391,000, well below the consensus forecast of 420,000, to the lowest level since April 1. August Pending Home Sales declined 1.3%, slightly less than expected. Earlier today, Germany passed a vote to provide increased aid to struggling European nations. Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/28/11

2011-09-28T10:31:00.000-04:00

Mortgage rates have risen for the past three days after reaching historic lows last week. Strength in stock markets resulting from renewed optimism over Europe has hurt bonds and mortgage-backed securities. This morning, August Durable Goods Orders declined 0.1%, which was slightly below the consensus forecast. The Mortgage Bankers Association weekly purchase activity index rose 2.6%, while the refinancing activity index increased by 11.2%. Average reported 30-year fixed rates fell to 4.25%, not including fees. Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/22/11

2011-09-22T11:28:00.000-04:00

Rates moved lower Thursday as sharp declines in global stock markets boosted mortgage-backed securities. Yesterday, the Fed announced plans to shift $400 billion of Treasury holdings to long-term from short-term securities in an effort to drive down long-term rates. The Fed statement indicated an uncertain economic outlook by the central bank, resulting in a sharp sell-off of stocks. Rates on 30-year fixed mortgages reached an all-time low this morning. In economic news, weekly Jobless Claims fell to 423,000, above forecast. Leading Indicators rose 0.3%, a bit more than expected. No other key data will be released today.

Daily Market Update 9/21/11

2011-09-21T10:13:00.000-04:00

Rates held steady Wednesday in quiet trading ahead of the Fed meeting. Fed officials are divided about whether to ease monetary policy further to stimulate the economy. Many investors believe that the Fed will announce a plan to decrease its quantity of short-term Treasury holdings and increase its long-term holdings. The highly anticipated announcement will take place at 2:15 PM. In economic news, August Existing Home Sales jumped 7.7%, well above expectations, to an annual rate of 5.03 million units. The Mortgage Bankers Association weekly purchase activity index fell by 4.7%, while the refinancing activity index rose by 2.2%. Average reported 30-year fixed rates remained unchanged at 4.29%, not including fees.

Daily Market Update 9/20/11

2011-09-20T11:18:00.000-04:00

Rates were little changed Tuesday as investors await tomorrow's FOMC meeting of the Fed. In economic news, August Housing Starts declined 5%, slightly more than forecast. Building Permits, a leading indicator, rose 3%, better than expected. Yesterday, Edward DeMarco, acting director of the Federal Housing Finance Agency (FHFA) which oversees Fannie Mae and Freddie Mac, announced that the two agencies will likely raise guarantee fees in 2012 through "a series of periodic, gradual price increases". The move is designed to reduce long-term exposure to credit risk by taxpayers, but comes at a time when the Obama Administration is attempting to encourage more borrowers to take advantage of low mortgage rates. Separately, some investors are expecting the Fed to announce "Operation Twist" following tomorrow's FOMC meeting. If enacted, the Fed would re-allocate a portion of its $1.65 trillion U.S. Treasury portfolio to increase long-term bond holdings and reduce short-term holdings in an effort to push long-term rates lower. Analysts are divided on the likely effectiveness of such a move. No other key data will be released today.

Daily Market Update 9/19/11

2011-09-19T11:33:00.000-04:00

Mortgage rates inched lower Monday as concerns about European debt hurt stock markets and lifted mortgage-backed securities. No economic data will be released today. The Federal Open Market Committee of the Fed will meet on Wednesday.

Daily Market Update 9/16/11

2011-09-16T11:27:00.000-04:00

Rates were little changed Friday. Mortgage-backed securities recovered from an initial sell-off after stocks pared early gains. Consumer Sentiment rose to 57.8, beating expectations. The big event next week will be Wednesday's FOMC meeting of the Fed. No rate changes are expected, but the Fed may announce plans to boost the economy. No other key data will be released today.

Daily Market Update 9/15/11

2011-09-15T11:57:00.000-04:00

Mortgage rates moved modestly higher Thursday following the release of a wide range of economic data. The August Consumer Price Index (CPI) rose 0.4%, above the consensus forecast of 0.2%, and was 3.8% higher than one year ago. Core CPI, which excludes volatile food and energy components, increased 0.2%, matching expectations, and rose 2.0% year-over-year. Weekly Jobless Claims jumped to 428,000, well above forecast, but weather-related issues may have inflated the results. Industrial Production rose 0.2%. An increase of 0.1% had been expected. The Philly Fed Index, a survey of manufacturing activity in Pennsylvania, New Jersey, and Delaware, came in at -17.5. Readings below zero indicate contraction in the manufacturing sector. In other news, five major central banks, including the ECB and U.S. Federal Reserve, will provide lending for European banks seeking short-term liquidity. The announcement boosted stocks, hurting bonds and mortgage-backed securities. No other key data will be released today.

Daily Market Update 9/14/11

2011-09-14T10:21:00.000-04:00

Rates were little changed Wednesday in volatile trading. In economic news, the August Producer Price Index (PPI) was unchanged, matching expectations, and was 6.5% higher than one year ago. Core PPI, which excludes food and energy components, rose 0.1%, slightly below forecast. Retail Sales were flat in August. An increase of 0.2% had been expected. The Mortgage Bankers Association weekly purchase activity index rose by 7%, while the refinancing activity index increased by 6%. Average reported 30-year fixed rates fell to 4.17%, not including fees. Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/13/11

2011-09-13T10:13:00.000-04:00

Rates inched higher Tuesday in quiet trading. August Import Prices fell 0.4% from July led by a decline in oil prices. Excluding oil, Import Prices rose 0.3%. Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/12/11

2011-09-12T11:02:00.001-04:00

Mortgage rates remained near 60-year lows Monday. Concerns about the increased likelihood of default by Greece hurt global stock markets. Bank of America announced plans to eliminate 30,000 jobs over the next three years. No key economic data will be released today. Results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/8/11

2011-09-08T10:29:00.000-04:00

Rates were little changed Thursday ahead of this evening's much-anticipated jobs plan speech by President Obama. In economic news, weekly Jobless Claims rose to 414,000, above forecast. The July Trade Deficit was smaller than expected. The European Central Bank (ECB) made no change in rates. Stocks were mixed. Fed Chairman Ben Bernanke will be speaking at 1:00 PM. No other key data will be released today.

Daily Market Update 9/7/11

2011-09-07T10:27:00.000-04:00

Rates moved higher Wednesday as a rally in global stock markets hurt bonds and mortgage-backed securities. Investor concerns about Europe eased somewhat following the release of austerity measures by Italy and Greece. The Mortgage Bankers Association weekly purchase activity index rose 0.2%, while the refinancing activity index declined by 6.3%. Average reported 30-year fixed rates fell to 4.23%, not including fees. The Fed's Beige Book, a survey of economic conditions by the twelve regional Federal Reserve Banks, will be released at 2:00 PM.

Daily Market Update 9/6/11

2011-09-06T10:20:00.000-04:00

Mortgage rates were little changed Tuesday in quiet trading. Stocks fell sharply on growing concerns that the economy may be moving closer to a recession. In economic news, the Institute for Supply Management services index rose unexpectedly to 53.3 from 52.7. Readings above 50.0 indicate growth in the services sector of the economy. No other key data will be released today.

Daily Market Update 9/2/11

2011-09-02T10:22:00.000-04:00

Rates inched lower Friday following the release of weaker than expected employment data. The U.S. economy added no net jobs in August, and the figures for June and July were revised lower by 58,000. The unemployment rate remained at 9.1%. Average Hourly Earnings, a proxy for wage growth, declined unexpectedly. Stocks fell sharply. In addition, investors grew more concerned about the health of European banks and the willingness of Italy's political leaders to implement austerity measures. Next week will be relatively quiet in terms of new economic data. Markets will be closed on Monday in observance of Labor Day.

Daily Market Update 9/1/11

2011-09-01T10:58:00.001-04:00

Rates held steady Thursday in another day of volatile trading. In economic news, weekly Jobless Claims fell to 409,000, close to forecast. Second quarter Productivity declined by 0.7%, a bit lower than expected. Construction Spending fell 1.3% in July, below expectations. The Institute for Supply Management manufacturing index came in at 50.6. Readings above 50.0 indicate expansion in the manufacturing sector of the economy. No other key data will be released today.

Daily Market Update 8/31/11

2011-08-31T11:01:00.000-04:00

Rates were little changed Wednesday in volatile trading. This morning, the Chicago PMI manufacturing index fell to 56.5, beating forecast. Payroll firm ADP estimated a net gain of 91,000 private sector jobs in August ahead of this Friday's Employment Report, a bit less than expected. Factory Orders rose 2.4%, led by the transportation component. Stocks moved higher. The Mortgage Bankers Association weekly purchase activity index increased by 0.9%, while the refinancing activity index decreased by 12.2%. Average reported 30-year fixed rates fell to 4.32%, not including fees. No other key data will be released today.

Daily Market Update 8/30/11

2011-08-30T10:44:00.000-04:00

Mortgage rates eased slightly Tuesday following the release of weaker than expected economic data. Consumer Confidence plummeted in August to 44.5, its lowest reading since April 2009, and well below the consensus forecast of 52.0. Federal Reserve Bank of Chicago President Charles Evans said in an interview this morning that he would "favor more accommodation" by the Fed, citing weak economic growth in the first half of the year. Minutes from last month's FOMC meeting of the Fed will be released at 2:00 PM.

Daily Market Update 8/29/11

2011-08-29T10:17:00.000-04:00

Rates moved higher Monday as a rally in global stock markets hurt mortgage-backed securities. Investors were relieved that damage from Hurricane Irene was less severe than had been expected. In economic news, the July Core PCE price index, one of the Fed's preferred measures of inflation, increased 0.2% from June, matching expectations. Personal Income rose by 0.3%, slightly below the consensus forecast. Pending Home Sales fell 1.3%, a bit less than expected. No other key data will be released today.

Daily Market Update 8/26/11

2011-08-26T11:00:00.000-04:00

Mortgage rates inched lower Friday as second quarter GDP was revised down to 1.0% from 1.3%. In a much-anticipated speech this morning, Fed Chairman Ben Bernanke said that the Fed will consider additional monetary stimulus measures at its September meeting and will implement them if appropriate, but that fiscal policy changes by lawmakers are needed to help boost the economy and labor market. He gave no indication that the Fed will loosen monetary policy. The big event next week will be Friday's Employment Report for August. Also next week, the Institute for Supply Management manufacturing index will be released on Thursday. No other key data will be released today.

Daily Market Update 8/25/11

2011-08-25T11:41:00.000-04:00

Rates held steady Thursday as mortgage-backed securities recovered from losses that occurred late Wednesday. This morning, weekly Jobless Claims rose to 417,000, above forecast, but most of the increase resulted from a labor strike at Verizon. Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/24/11

2011-08-24T12:12:00.000-04:00

Mortgage rates were little changed Wednesday. In economic news, July Durable Goods Orders rose 4.0%, well above the consensus forecast of +2.0%. Excluding the volatile transportation component, orders rose 0.7%, also beating expectations. The Federal Housing Finance Agency reported that home prices fell 5.9% during the second quarter from one year earlier, the biggest drop since 2009. The Mortgage Bankers Association weekly purchase activity index fell 5.9%, to the lowest level since December 1996. The refinancing activity index declined by 1.7%, as average reported 30-year fixed rates rose last week to 4.39%, not including fees. Results from today's 5-year Treasury auction will be released at 1:00 PM. Fed Chairman Ben Bernanke will be delivering a highly anticipated speech at the annual Fed meeting in Jackson Hole, WY on Friday. Some analysts are expecting Bernanke to announce new economic stimulus by the Fed.

Daily Market Update 8/22/11

2011-08-22T10:48:00.000-04:00

Mortgage rates faced upward pressure Monday as a rally in global stock markets pushed mortgage-backed securities lower. No key economic data will be released today.

Daily Market Update 8/19/11

2011-08-19T11:09:00.000-04:00

Mortgage rates moved higher Friday after hitting 50-year lows yesterday. Investors are expressing concerns that the Fed's pledge to hold short-term rates near zero until mid-2013 risks an inflationary surge once the economy begins to improve. Also, some lenders have begun increasing margins to slow refinancing volume due to capacity limitations. No key economic data will be released today. Next week, New Home Sales will come out on Tuesday, Durable Goods Orders on Wednesday, and revised second quarter GDP figures on Friday.

Daily Market Update 8/18/11

2011-08-18T11:30:00.000-04:00

Rates inched lower Thursday as weakness in global stock markets lifted mortgage-backed securities. The Wall Street Journal reported that the Federal Reserve Bank of New York has increased its scrutiny of large European banks with U.S. operations over concerns that the banks may lack reliable access to the funds needed for day-to-day operations. In economic news, weekly Jobless Claims rose to 408,000, above the consensus forecast of 400,000. The July Consumer Price Index (CPI) increased 0.5% from June, more than expected, and was 3.6% higher than one year ago. Core CPI, which excludes food and energy components, rose a more tame 0.2%, in line with expectations. Existing Home Sales fell unexpectedly by 3.5%. Leading Indicators rose 0.5%, beating forecast. No other key economic data will be released today.

Daily Market Update 8/17/11

2011-08-17T10:44:00.000-04:00

Mortgage rates dipped Wednesday in spite of an unexpected increase in wholesale prices. The July Producer Price Index (PPI) rose 0.2% from June, and was 7.2% higher than one year ago. Core PPI, which excludes volatile food and energy components, rose 0.4% in July, and 2.5% year-over-year. Stocks moved higher. No other key data will be released today.

Daily Market Update 8/16/11

2011-08-16T11:01:00.000-04:00

Mortgage rates held steady Tuesday as the impact of stronger than expected economic data was offset by weakness in stock markets. July Housing Starts fell 1.5% to an annual rate of 604,000 units, in line with expectations. Industrial Production rose 0.9%, above the consensus forecast of +0.5%, to the fastest pace in seven months. European officials are meeting to discuss support for European banks. No other key data will be released today.

Daily Market Update 8/15/11

2011-08-15T11:19:00.000-04:00

Rates were little changed Monday as last week's extreme market volatility began to settle. In economic news, the Empire State Index fell to -7.7, below the consensus forecast of +1.0. No other key data will be released today.

Daily Market Update 8/12/11

2011-08-12T14:29:00.000-04:00

Mortgage rates held steady Friday, ending one of the most volatile weeks ever. Yesterday, rates reached new lows for the year. This morning, July Retail Sales rose 0.5%, in line with expectations. Consumer Sentiment fell to the lowest level since May 1980. No other key data will be released today. Next week, Industrial Production will come out on Tuesday, the Producer Price Index on Wednesday, and the Consumer Price Index and Existing Home Sales on Thursday.

Daily Market Update 8/11/11

2011-08-11T11:00:00.000-04:00

Mortgage rates were little changed Thursday as stocks rebounded from yesterday's steep losses. Trading remains highly volatile. In economic news, weekly Jobless Claims fell to 395,000, below forecast, to the lowest level since April. The June Trade Deficit rose to $53.1 billion, larger than expected. Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/10/11

2011-08-10T10:19:00.000-04:00

Mortgage rates moved lower Wednesday on the heals of yesterday's unprecedented Fed statement. The Federal Open Market Committee said it "currently anticipates" that economic conditions "warrant exceptionally low levels for the federal funds rate at least through mid-2013". Stocks, bonds, and mortgage-backed securities rallied on the news, although US stock markets fell sharply this morning on concerns about European banks. The Fed has never before provided such an extended outlook for its monetary policy intentions, and this may be an indication that the Fed is running out of tools to stoke economic growth. It also underscores the level of weakness in the economy as viewed by the Fed. In the near term, it should bode well for mortgage rates, and may help boost the depressed real estate market. No key economic data will be released today. Results from today's 10-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/9/11

2011-08-09T10:39:00.000-04:00

Rates inched higher Tuesday morning as stocks partially recovered from yesterday's drubbing. The Federal Open Market Committee (FOMC) of the Fed is meeting today to discuss monetary policy and will release a statement at 2:15 PM. Investors will be watching closely for indications of further stimulus by the Fed. In economic news, second quarter Productivity fell by 0.3%, a bit less than forecast. Results from today's $32 billion 3-year Treasury auction, the first since Friday's US credit downgrade by S&P, will be released at 1:00 PM.

Daily Market Update 8/8/11

2011-08-08T11:11:00.000-04:00

Rates moved lower Monday in spite of S&P's credit ratings downgrades of Fannie Mae, Freddie Mac, and Federal Home Loan Bank debt. These follow Friday's downgrade of US debt. A flight to quality from riskier assets, such as stocks and commodities, boosted Treasury bonds and mortgage-backed securities. Oil prices fell sharply, while gold prices surged. Investors are also focusing on the slowing pace of global economic growth. Markets are likely to remain extremely volatile in the coming days. No key economic data will be released today.

Daily Market Update 8/5/11

2011-08-05T11:50:00.000-04:00

Mortgage rates inched higher Friday following a better than expected Employment Report. The economy added 117,000 jobs in July, beating the consensus forecast of 85,000. The Unemployment Rate unexpectedly declined to 9.1%. Average Hourly Earnings, a proxy for wage growth, increased at a 2.3% annual rate, which was higher than expected. Although the employment picture remains weak, today's data exceeded expectations in nearly every area, pushing stocks modestly higher and hurting bonds and mortgage-backed securities. The big event next week will be Tuesday's FOMC meeting of the Fed. While no rate change is expected, investors will be looking for indications that the Fed may be considering other stimulative measures. Also next week, Retail Sales figures for July will be released on Friday. No other key data will be released today.

Daily Market Update 8/4/11

2011-08-04T10:30:00.000-04:00

Rates inched lower Thursday as concerns about debt problems in weaker European nations hurt stock markets and lifted mortgage-backed securities. The European Central Bank (ECB) made no change in interest rates, as expected. Weekly Jobless Claims came in at 400,000, matching forecast. Tomorrow, the closely-watched Employment Report for July will be released at 8:30 AM. No other data will be released today.

Daily Market Update 8/3/11

2011-08-03T11:42:00.000-04:00

Rates continued their downward trend Wednesday as weakness in stock markets boosted bonds and mortgage-backed securities. In economic news, payroll firm ADP forecast private sector job growth of 117,000 in July ahead of this Friday's Employment Report. Factory Orders declined 0.8%, close to expectations. The Institute for Supply Management services index fell to 52.7, a bit below forecast. Readings above 50.0 indicate expansion in the services sector of the economy. The Mortgage Bankers Association weekly purchase activity index rose by 5.1%, while the refinancing activity index increased by 7.8%. Average reported 30-year fixed rates fell to 4.45%, not including fees. No other key data will be released today.