Daily Market Update 10/11/10

The mortgage-backed securities market is closed today in observance of Columbus Day. Markets will reopen tomorrow at 8:30 AM.

Daily Market Update 10/8/10

Mortgage rates inched lower Friday following the release of weaker than expected employment data. The economy lost 95,000 jobs in September, more than forecast. The private sector actually added 64,000 jobs, but state and local governments continued to shed jobs rapidly. The Unemployment Rate, which is calculated differently than the Non-farm Payrolls report, remained at 9.6%. A broader measure, which also includes the "under-employed", rose to 17.1%, matching the high reached in April. Investors believe today's data will add pressure on the Fed to undertake additional monetary stimulus action. No other data will be released today.

Daily Market Update 10/7/10

Mortgage rates were little changed Thursday ahead of tomorrow's key employment data. This morning, weekly Jobless Claims fell to 445,000, below the consensus forecast of 455,000. Investors are focused on Friday's Non-farm Payrolls report for September. Analysts are expecting the Unemployment Rate to increase to 9.7% from the current 9.6%. This will be the last reading prior to next month's election, and could influence the outcome of some close races. No other data will be released today.

Daily Market Update 10/6/10

Rates inched lower Wednesday following a disappointing estimate for Friday's employment data. Payrolls firm ADP anticipated a net loss of 39,000 private sector jobs in September, well below the consensus forecast. The Mortgage Bankers Association weekly purchase activity index rose by 9%, boosted by a rush of home buyers attempting to obtain new loans prior to an increase in FHA mortgage insurance premiums that went into effect on Monday. The refinancing index fell by 3%. No other data will be released today.

Daily Market Update 10/5/10

Rates held steady Tuesday in volatile trading. Overnight, the Bank of Japan unexpectedly cut interest rates to nearly zero and announced a $418 billion monetary easing program to boost the economy. Bonds and mortgage-backed securities rallied on the news, but later gave up those gains following a strong opening in the stock market. In economic news, the Institute for Supply Management services index rose to 53.2, beating expectations. Readings above 50.0 indicate expansion in the services sector of the economy. No other data will be released today.

Daily Market Update 10/4/10

Mortgage rates were little changed Monday in quiet trading. Pending Home Sales rose 4.3% in August, beating forecast, and providing further indication that the housing market has begun to stabilize following the expiration of home buyer tax credits in April. Meanwhile, Factory Orders declined 0.5%, in line with expectations. No other data will be released today.

Daily Market Update 10/1/10

Rates held steady Friday in quiet trading. Personal Income increased 0.5% in August, better than expected. The Core PCE price index, the Fed's preferred measure of inflation, rose 0.1% from July, and was a tame 1.4% higher than one year ago. The Institute for Supply Management manufacturing index fell to 54.4, a bit below forecast. Readings above 50.0 indicate expansion in the manufacturing sector. Construction Spending rose 0.4%, beating expectations. Federal Reserve of New York President William Dudley stated that further Fed action to stimulate the economy is "likely to be warranted" unless the economy improves quickly. No other data will be released today.