Daily Market Update 11/10/09

Mortgage rates continued moving lower Tuesday. The Treasury will auction $25 billion of 10-year notes this afternoon at 1:00 PM et. Median US home prices fell 11.2% in the third quarter from one year earlier according to the National Association of Realtors. The median price in the Louisville Metropolitan Area rose 0.1% over the same period. No economic data will be released today. The market will be closed tomorrow.

Daily Market Update 11/9/09

Rates were little changed Monday, as no major economic data will be released this week. Treasury auctions of 3- and 10-year notes and 30-year bonds taking place Monday, Tuesday, and Thursday, respectively, will likely have the greatest impact on mortgage-backed securities. Average 30-year fixed rates have again slipped below 5%. Last Friday the $8,000 first-time homebuyer tax credit was extended to include homes under contract by 4/30/10 and closed by 6/30/10. The program was expanded to include a maximum $6,500 credit to non-first-time buyers who have been in their current homes for at least 5 years. Financial markets will be closed Wednesday in observance of Veteran's Day.

Daily Market Update 11/6/09

Rates moved lower Friday following weaker than expected jobs data. The Unemployment Rate rose to 10.2% in October from 9.8% in September, the highest level since April 1983. The economy lost 190,000 jobs last month, and revisions to prior months added another 90,000 to the previously announced figures. On a positive note, average hourly earnings, a proxy for wage growth, rose a bit more than forecast. No other data will be released today.

Daily Market Update 11/5/09

Mortgage rates held steady Thursday as third quarter Productivity increased 9.5%, far above the consensus forecast. The data confirmed that businesses are getting more work out of existing employees, easing labor unit costs. Weekly Jobless Claims fell to 512,000, below expectations, and to the lowest level since January 3. The Senate passed a bill extending the $8,000 first-time homebuyer tax credit, making it applicable to contracts entered into by April 30, 2010, and closed by June 30, 2010. The bill includes a new $6,500 tax credit to homebuyers who have owned their current homes for at least 5 years, subject to income limits. The bill now moves to the House, where quick passage is expected. The Nonfarm Payrolls report for October will be released tomorrow at 8:30 AM.

Daily Market Update 11/4/09

Rates inched higher Wednesday ahead of this afternoon's Fed announcement. The Federal Open Market Committee (FOMC) of the Federal Reserve will release a statement at 2:15 PM, and while no rate change is expected, investors will be looking for some indication about when the Fed will begin tightening monetary policy. In economic news, the Institute for Supply Management services index fell unexpectedly in October. No other data will be released today.

Daily Market Update 11/3/09

Mortgage rates held steady Tuesday. In economic news, Factory Orders rose 0.9% last month, slightly above forecast. Investors have now turned their focus to tomorrow's FOMC meeting and Friday's Nonfarm Payrolls report. The mortgage-backed securities market is likely to remain volatile for rest of the week. No other economic data will be released today.

Daily Market Update 11/02/09

Mortgage rates were little changed Monday in spite of the release of stronger than expected economic data. The Institute for Supply Management manufacturing index rose to 55.7 last month from 52.6 in September. A reading above 50.0 indicates expansion. Pending Home Sales rose for the eighth straight month in October as buyers rushed to take advantage of the $8,000 first time homebuyer tax credit due to expire November 30. An extension of the credit by Congress appears likely, but has not yet been finalized. The Fed begins a two day FOMC meeting tomorrow, and while no rate change is expected, investors will be looking for clues as to when and how the Fed may begin unwinding the stimulus they've pumped into the economy. With unemployment at 9.8% and inflation under control in the near term, Fed officials may not be inclined to rush the process.