Daily Market Update 3/10/09

Mortgage rates remained little changed Tuesday as mortgage-backed securities outperformed Treasuries. Treasury markets sank ahead of this afternoon's $34 billion auction of 3-year notes. The government will also auction $18 billion of 10-year notes tomorrow and $11 billion 30-year notes Thursday. Traders are concerned about the immense supply of government debt needed to finance the various rescue and stimulus plans. Bonds came under further pressure as stocks moved sharply higher. Fed Chairman Ben Bernanke pressed for a complete overhaul of US financial regulations in a speech this morning before the Council on Foreign Relations. No economic data will be released today.

Daily Market Update 3/9/09

Rates inched higher early Monday as US stock prices rose, pressuring Treasuries and mortgage-backed securities. Asian and European stock markets moved sharply lower. Oil prices climbed to $48 per barrel on anticipated production cuts by OPEC. No major economic data will be released today.

Daily Market Update

Mortgage rates moved lower Friday reflecting gains in mortgage-backed securities (MBS) late Thursday. The Labor Department reported February job losses of 651,000, in line with expectations. The Unemployment Rate rose to 8.1% from 7.6% in January, the highest level since December 1983. Financial markets showed little reaction to the report, as many investors were prepared for even weaker data. Stocks and Treasuries moved slightly higher, MBS's were little changed. Next week will be light in terms of key economic data, with the exception of Wednesday's report on Retail Sales.

Daily Market Update 3/5/09

Mortgage rates improved slightly Thursday following weakness in the stock market and moves by central banks in Europe. The European Central Bank and Bank of England both cut benchmark rates by 1/2% to new record lows of 1.50% and .50%, respectively. First time Jobless Claims declined to 639,000, below consensus, but near record levels. Factory Orders fell 1.9%, less than forecast. The Mortgage Bankers Association reported 11.18% of borrowers are at least 30 days behind in their mortgage payments. Details of President Obama's Homeowner Stability Initiative were released yesterday and can be found at http://www.financialstability.gov/. Traders are now turning their focus to tomorrow's release of the Non-farm Payrolls report for February. A significant rise in unemployment may nudge rates lower.

Daily Market Update 3/4/09

Mortgage rates were little changed Wednesday as mortgage-backed securities outperformed Treasuries. Rebounding stock prices pushed Treasury yields higher, reversing a recent "flight-to-quality" pattern. The Institute for Supply Management services index fell in February, although the decline in the services sector of the economy was less than forecast. The Fed's "Beige Book", a survey economic conditions by their 12 regional banks, will be released this afternoon at 2:00 PM. Details of President Obama's plan to provide relief to troubled homeowners were released today. The Administration hopes to stem to tide of rising foreclosures and stabilize real estate prices. Investors are now turning their focus to the Non-farm Payrolls report due out Friday.

Daily Market Update 3/3/09

Mortgage rates were little changed Tuesday following slight improvement late Monday. The National Association of Realtors (NAR) reported a 7.7% decline in January's Pending Home Sales, more than double forecast. On a more positive note, the NAR's Affordability Index rose to 166.8 in January, the highest mark since tracking began in 1970. The combination of lower home prices and historically low interest rates has improved home affordability dramatically over the past year. Stocks moved generally higher. No other economic data will be released today.

Daily Market Update 3/2/09

Mortgage rates inched higher Monday, moving in opposite direction from Treasuries. Mortgage-backed securities' yields were little changed this morning but increased late Friday. January Personal Income rose 0.4%, well above forecast. A number of one-time factors such as military bonuses were responsible for the results. Construction Spending declined 3.3%, more than expected. The Institute for Supply Management factory index rose slightly, indicating contraction in the manufacturing sector may be slowing. Stocks and crude oil prices fell sharply. The Dow Jones Industrial Average moved below 7,000 for the first time since October 1997. Several key economic reports are due out this week, most notably February Non-farm Payrolls, to be release Friday.