Daily Market Update 5/20/10

Rates inched lower Thursday as global investors shifted funds away from stocks, lifting mortgage-backed securities. Weekly Jobless Claims rose to 471,000, well above the consensus forecast of 440,000. Leading Indicators fell 0.1% in April, the first decline in over a year. The Philadelphia Fed Index came in slightly below expectations. Stocks fell sharply. No other data will be released today.

Daily Market Update 5/19/10

Mortgage rates remained near record low levels Wednesday as consumer inflation came in close to expectations. The Consumer Price Index (CPI) declined -0.1% and was 2.2% higher than one year ago. Core CPI, which excludes volatile food and energy components, rose at a tame 0.9% annual rate. The Mortgage Bankers Association weekly purchase activity index fell 27%, to the lowest level since 1997, reflecting the recent expiration of homebuyer tax incentives. Stocks fell sharply. Minutes from last month's Federal Open Market Committee of the Federal Reserve will be released at 2:00 PM.

Daily Market Update 5/18/10

30-year fixed rates remained below 5% Tuesday on tame inflation and mixed housing data. The April Producer Price Index (PPI) declined unexpectedly by -0.1%. Core PPI, which excludes food and energy components, rose at a low 1.0% annual rate. April Housing Starts increased 5.8% to an 18 month high, while Building Permits, a leading indicator, fell -11.5%. Stocks moved higher. No other data will be released today.

Daily Market Update 5/17/10

Rates inched lower Monday. The Fannie Mae 30-year fixed net required yield is now at the lowest level of the year. In economic news, the Empire State regional manufacturing index declined to 19.1. Although well below forecast, readings above zero indicate expansion in the manufacturing sector. Stocks and oil prices moved lower. No other data will be released today.

Daily Market Update 5/14/10

Rates inched lower Friday as bonds and mortgage-backed securities benefited from a sharp decline in global stock markets. Investors remain worried about the European debt crisis and the possible demise of the Euro, which would hamper future economic growth. In other news, April Retail Sales rose 0.4%, above expectations. Industrial Production increased 0.8%, in line with forecast. Consumer Sentiment rose a bit less than expected. Major economic data due out next week include Tuesday's release of the Producer Price Index (PPI) and the Consumer Price Index (CPI) on Wednesday.

Daily Market Update 5/13/10

Mortgage rates remained below 5% Thursday. Freddie Mac reported that 30-year fixed rates averaged 4.93% with 0.7 points over the past week, a 5-month low. Weekly Jobless Claims fell to 444,000, close to the consensus forecast of 440,000. Retail Sales and Industrial Production data will be released tomorrow.

Daily Market Update 5/12/10

Rates were little changed Wednesday in quiet trading. In economic news, the March Trade Deficit rose to $40.4 billion to the highest level in over a year. The Mortgage Bankers Association weekly purchase activity index fell 10% as homebuyer tax credits expired April 30. There will be a 10-year Treasury auction at 1:00 PM.