Daily Market Update 1/11/11

Rates held steady Tuesday in light trading. Results from today's 3-year Treasury auction will be released at 1:00 PM. No key economic data will be released today.

Daily Market Update 1/10/11

Mortgage rates were little changed Monday in quiet trading. Mortgage-backed securities received a small boost from weakness in the stock market, but no key economic data will be released today.

Daily Market Update 1/7/11

Mortgage rates inched lower Friday following a disappointing Employment Report. The economy added 103,000 jobs in December, well below forecast. Surprisingly, the Unemployment Rate fell to 9.4% from 9.8%, the lowest level in 19 months. Economists suggest that seasonal factors may have been a factor in the large reduction. Over the last three months, the economy added an average of 128,000 jobs per month, roughly the number needed to keep pace with population growth. This morning, in testimony before the Senate Budget Committee, Fed Chairman Ben Bernanke said "it could take four to five more years for the job market to normalize fully". Next week, the December Producer Price Index will be released on Thursday, the Consumer Price Index, Retail Sales, and Industrial Production on Friday. No other key data will be released today.

Daily Market Update 1/6/11

Mortgage rates were little changed Thursday. Weekly Jobless Claims rose to 409,000, slightly above forecast. Meanwhile, the four-week average fell to 411,000, the lowest level since July 2008. December Retail Sales rose 3.1%, a bit less than expected. The closely-watched monthly Employment Report for December will be released tomorrow at 8:30 AM. No other key data will be released today.

Daily Market Update 1/5/11

Rates moved higher Wednesday on stronger than expected economic data. This morning, private payroll firm ADP forecast 300,000 private sector job gains in December, causing investors to raise their expectations for this Friday's Employment Report. Separately, the Institute for Supply Management services index reading came in at 57.1, indicating the fastest pace of growth in the services sector of the economy since May 2006. Stocks moved higher. No other data will be released today.

Daily Market Update 1/4/11

Mortgage rates were little changed Tuesday ahead of this afternoon's release of minutes from the December 14 FOMC meeting of the Fed. Investors will be watching to see the level of support for the Fed's quantitative easing program. The FOMC Minutes will be released at 2:00 PM. In economic news, Factory Orders rose by 0.7% in November, beating expectations. No other key data will be released today.

Daily Market Update 1/3/11

Mortgage rates inched lower Monday, reflecting gains in mortgage-backed securities late last week. This morning, some upward pressure on rates resulted from a rally in the stock market. The Institute for Supply Management manufacturing index reading came in at 57.0, in line with expectations. Readings above 50.0 indicate expansion in the manufacturing sector of the economy. Construction Spending rose 0.4% last month, beating forecast. No other data will be released today. Happy New Year!