Daily Market Update 9/10/09

Rates moved lower Thursday as global bond markets improved when the Bank of England (BOE) did not increase its stimulus programs. As expected, the BOE held rates unchanged. Weekly Jobless Claims fell a bit more than expected to 550,000. The July Trade Deficit rose sharply, driven by new car sales under the Cash for Clunkers program. Freddie Mac reported average 30-year fixed mortgage rates for the past week of 5.07% with .7 points, down slightly from the previous week. The Treasury will wrap up its 3 day auction with the sale of 30-year bonds this afternoon at 1:00 PM. No more economic data will be released today.

Daily Market Update 9/9/09

Mortgage rates remained mostly unchanged Wednesday ahead of this afternoon's Treasury auction of 10-year notes. This morning, the US dollar dropped to its lowest level of the year. Stocks moved modestly higher. The Federal Reserve will release its Beige Book, a survey of economic activity by the Fed's 12 regional banks, at 2:00 PM. The Mortgage Bankers Association weekly purchase activity index rose by 10%, while the refinancing activity index increased by 23%, as 30-year fixed rates approached 5% last week. No economic data will be released today.

Daily Market Update 9/8/09

Rates inched higher Tuesday ahead of this week's large Treasury auctions of 3- and 10-year notes and 30-year bonds, scheduled for the next three days. It will be a light week for economic news. Stocks, oil, and gold prices all moved higher, the dollar lower. No economic data will be released today.

Daily Market Update 9/4/09

Mortgage rates held steady Friday following mixed jobs data for August. The Labor Department reported the U.S. economy lost 216,000 jobs last month, less than the consensus forecast of -230,000. However, payroll figures for the two previous months were revised down by 49,000, resulting in a jump in the Unemployment Rate to 9.7%, the highest level in 26 years. Stocks moved modestly higher. Next week the Treasury will auction $70 billion of 3-, 10-, and 30-year notes beginning Tuesday. The mortgage-backed securities market will close at 2:00 PM today for the Labor Day Holiday.

Daily Market Update 9/3/09

Rates were little changed Thursday as weekly Jobless Claims came in close to expectations. The Institute for Supply Management services index reported a reading of 48.4, slightly above forecast, but indicating the services sector of the economy remains in contraction. Stocks were mixed. Investors will be closely watching tomorrow's Non-farm Payrolls report for August.

Daily Market Update 9/2/09

Mortgage rates inched lower Wednesday as the 30-year fixed Fannie Mae required net yield fell to its lowest level since July 14. This morning, second quarter Productivity was revised higher to +6.6%, as manufacturers cut expenses. Unit labor costs fell 5.9%, the biggest decline in 9 years. Factory Orders rose 1.3%, below forecast. Minutes from last month's FOMC meeting will come out at 2:00 PM. No other economic data will be released today.

Daily Market Update 9/1/09

Rates held steady Tuesday as stronger than expected economic data was offset by concerns over rising bank losses. The Institute for Supply Management index showed manufacturing expanded for the first time in 19 months. Pending Home Sales increased 3.2% in July, led by low interest rates, distressed sales, and tax incentives for buyers. Construction Spending fell 0.2%, in line with forecast. Stocks fell sharply on growing concerns over bank failures. Last week the FDIC raised its list of problem banks to 416, from 305 three months earlier. Total assets of the banks on the list was nearly $300 billion, while the fund to insure deposits fell to $10.4 billion. The FDIC may soon need to borrow from the Treasury to repay bank depositors. Minutes from last month's FOMC meeting of the Fed will be released tomorrow.