Daily Market Update 1/12/12

Rates moved lower Thursday reflecting improvement in mortgage-backed securities prices late Wednesday.  In economic news, Retail Sales rose 0.1% in December, well below forecast.  Excluding autos, Retail Sales fell 0.2%, the first monthly decline since May 2010.  Weekly Jobless Claims rose to 399,000, above the consensus of 375,000.  The European Central Bank (ECB) made no change in rates, as expected.  Stocks moved lower.  Results from today's 30-year Treasury auction will be released at 1:00 PM.

Daily Market Update 1/11/12

Mortgage rates were little changed Wednesday in quiet trading.  The Mortgage Bankers Association weekly purchase activity index rose by 8.1% while the refinancing activity index increased by 3.3%.  Average reported 30-year fixed rates rose to 4.11% last week, not including fees.  Results from today's 10-year Treasury auction will be released at 1:00 PM.  The Beige Book, a survey of economic activity by the Fed's 12 regional banks, will be released at 2:00 PM.

Daily Market Update 1/10/12

Rates inched higher Tuesday as mortgage-backed securities faced pressure from higher stock prices.  No key economic data will be released today, but results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 1/9/12

Mortgage rates inched lower Monday, approaching historic lows.  No key economic data will be released today.  Those considering refinancing may want to start the process prior to February 1, when lenders will begin passing on higher Fannie Mae and Freddie Mac guarantee fees to borrowers.  The fee increases, which equate to about .125% higher mortgage rates, resulted from the two month payroll tax cut extension enacted by Congress and signed by the President in December.

Daily Market Update 1/6/12

Rates were little changed Friday following a stronger than expected Employment Report.  The economy added 200,000 jobs in December, beating forecast.  The Unemployment Rate declined unexpectedly to 8.5%, however the decline was partly due to the increase in the number of people dropping out of the  labor force.  Average Hourly Earnings, a proxy for wage growth, increased by 2.1% from one year ago.  Stocks moved modestly lower.  No other key data will be released today.

Daily Market Update 1/5/12

Mortgage rates inched higher Thursday in volatile trading.  This morning, payroll firm ADP estimated private sector job growth of 325,000 in December, doubling forecast.  However, ADP has had a mixed record of accuracy with past predictions for the Employment Report, which is due out Friday.  Weekly Jobless Claims fell to 372,000, close to expectations.  The Institute for Supply Management services index rose to 52.6, slightly below forecast.  Readings above 50.0 indicate expansion in the services sector of the economy.  No other key data will be released today.

Daily Market Update 1/3/12

Mortgage rates inched higher Tuesday as U.S. financial markets reopened following the New Year's holiday.  Stocks moved higher on improved investor confidence in the global economy.  In economic news, the Institute for Supply Management manufacturing index rose to 53.9 from 52.7, beating forecast.  Readings above 50.0 indicate growth in the manufacturing sector.  Minutes from the December 13th FOMC meeting of the Fed will be released at 2:00 PM.  The big news for the week will be Friday's Employment Report.