Daily Market Update 7/17/09

Rates remained little changed Friday in the wake of better-than-expected housing data. June Housing Starts rose 4% to the highest level in seven months. Building Permits, a leading indicator, jumped 9%. Rates have now moved about 1/4% higher over the past week. Stocks turned marginally lower, oil prices higher. Next week will be relatively quiet in terms of new economic data. Existing Home Sales for June will be released Thursday.

Daily Market Update 7/16/09

Mortgage rates were little changed Thursday after mortgage-backed securities recovered losses sustained late Wednesday. Investors shrugged off lower-than-expected weekly Jobless Claims and focused on news that commercial lending giant CIT was nearing bankruptcy following failed negotiations for federal aid. China stepped up purchases of US Treasurys in a "flight to quality". The Philly Fed index, a survey of manufacturing activity in the region, came in below forecast. No other economic data will be released today.

Daily Market Update 7/15/09

Rates moved higher Wednesday as strength in stocks pushed mortgage-backed securities markets lower. The Consumer Price Index (CPI) rose 0.7% in June, in line with expectations. The core CPI, which excludes volatile food and energy components, rose 0.2% for the month. Industrial Production topped forecast, having declined 0.4% in June, as manufacturing began showing signs of stabilization. The FOMC minutes from the June 24 Fed meeting will be released at 2:00 PM et.

Daily Market Update 7/14/09

Mortgage rates inched higher this morning as the June Producer Price Index (PPI) rose more than expected. The closely-watched "core" rate rose 0.5% last month, well above the consensus forecast of 0.1%. The core PPI was 3.4% higher than one year ago. Retail Sales rose 0.5% in June, close to expectations. Stocks moved lower. The Consumer Price Index and minutes from last month's FOMC meeting will be released tomorrow.

Daily Market Update 7/13/09

Mortgage rates were little changed Monday as mortgage-backed securities held gains from last week. Stocks were mixed, oil prices slid below $60 per barrel. Investors are focusing on inflation data to be released over the next two days, beginning with the Producer Price Index on Tuesday, followed by the Consumer Price Index on Wednesday. In addition, minutes from the June 24 FOMC meeting of the Federal Reserve will be released Wednesday.

Daily Market Update 7/2/09

Mortgage rates inched lower Thursday in a shortened session ahead of the July 4th holiday. Non-farm Payrolls fell by 467,000 in June, far more than the consensus forecast of -363,000. The Unemployment Rate rose to 9.5%. Stocks and oil prices moved sharply lower. The European Central Bank (ECB) held rates steady at 1%, as expected. Mortgage-backed securities markets will close this afternoon at 2:00 PM.

Daily Market Update 7/1/09

Mortgage rates were little changed Wednesday as today's economic data came in close to expectations. Construction Spending fell 0.9% in May, a bit more than forecast, while Pending Home Sales rose 0.1%, beating forecast. The Mortgage Bankers Association weekly purchase activity index fell by 5%, while refinancing activity decreased by 30%. The closely-watched Non-farm Payrolls Report for June will be released tomorrow at 8:30 AM.