Daily Market Update 4/30/08

Mortgage rates were unchanged Wednesday morning following the release of preliminary Gross Domestic Product figures and ahead of this afternoon's policy decision by the Fed. First quarter GDP showed economic growth of 0.6%, matching fourth quarter figures for 2007, and largely in line with expectations. While basically flat, the economy may not technically be in recession, and is certainly showing more resiliency than some forecasters had predicted. All eyes are now on the Fed, whose announcement is scheduled for 2:15 PM.

Daily Market Update 4/29/08

Mortgage rates drifted lower ahead of tomorrow's interest rate policy decision by the Federal Reserve. Most economists predict a 1/4% cut in the Fed Funds Rate to 2%. The accompanying statement issued by the Fed concerning future rate bias is likely to have a greater impact on mortgage rates than the much-anticipated move itself. The initial reading of first quarter GDP will also be released Wednesday. Negative GDP growth would provide a strong indication of economic recession.

Daily Market Update 4/28/08

Mortgage rates were mostly unchanged Monday in advance of Wednesday's Fed meeting and Friday's release of the April Employment Report. Other major economic news for the week include the initial report on first quarter Gross Domestic Product (GDP) to be released Wednesday and the Fed's preferred inflation indicator, the Core PCE price index, scheduled for release Thursday. The Fed's policy decision and each of these three reports have the potential to move the market significantly in what is likely to be a volatile week for interest rates.

Daily Market Update 4/25/08

Mortgage rates inched higher Friday as investors await next week's meeting of the Federal Open Market Committee. Economists are forecasting an 80% chance of 1/4% reduction in the Fed Funds Rate and a 20% chance of no change. Ironically, the majority of consumers might be better off if the Fed holds rates steady, turning their focus instead to inflation. Rising food and energy prices have had a profound impact on many Americans in recent months. Aggressive rate cuts by the Fed have contributed to these higher costs by weakening the US Dollar. The first round of economic stimulus package checks begin going out Monday, further fueling inflationary concerns. Meanwhile, the Dollar strengthened this week against the Euro on signs the worst of the credit crisis may be over in the US, while European economies have been struggling.

Daily Market Update 4/24/08

Mortgage rates moved moderately higher Thursday as Weekly Jobless Claims came in lower than expected at 342,000. Separately, Durable Goods Orders for March posted their third consecutive monthly decline, increasing the likelihood of recession. New home sales fell to their lowest level since October 1991. Oil prices were lower and the Dollar gained strength on expectations the Fed may soon end their cycle of rate cuts.

Daily Market Update 4/23/08

Interest rates came under pressure Wednesday morning as skyrocketing oil prices renewed inflationary fears. Concerns mounted over next week's anticipated 1/4% cut in the Fed Funds Rate and its resulting impact on the value of the US Dollar versus foreign currencies. The weak Dollar has contributed to higher food and energy prices in recent months. No economic data will be released today.

Daily Market Update 4/22/08

Rates were mostly unchanged Tuesday morning as existing home sales for March came in on target with expectations. No other major economic reports are scheduled for release today. Investors' focus now turns to Thursday's release of Durable Goods Orders for March.