Daily Market Update 9/30/08

Rates inched higher Tuesday as stocks recovered partially from yesterday's losses. Speculation continued among traders that an economic rescue package will eventually pass Congress. Consumer Confidence and the Chicago Purchasing Manager's Index came in higher than forecast, but the news was overshadowed by events in Washington. The much-anticipated Employment Report for September will be released Friday.

Daily Market Update 9/29/08

Mortgage rates inched lower Monday as traders await further news on the proposed $700 billion rescue plan. Many lawmakers have expressed opposition to the plan but it is expected to pass within days. Also making headlines, Citigroup will purchase Wachovia, another firm which did not survive losses from mortgage investments. Today's economic data was mostly overlooked, as August Personal Income came in much lower than forecast. Domestic and foreign stock markets moved sharply lower. Oil prices fell to around $100 pb. The dollar traded higher against the euro.

Daily Market Update 9/25/08

Mortgage rates eased Thursday as Durable Goods Orders fell a larger than expected 4.5% in August. Jobless Claims rose to 493,000, far exceeding consensus. Rounding out the spate of negative economic news, New Home Sales fell 11.5% last month to their lowest levels in 17 years. However, investors' main focus has been the proposed $700 billion financial industry bailout. Last night President Bush went on live TV urging Congress to pass the plan to avoid a "long and painful recession". He is scheduled to meet today with presidential candidates McCain and Obama to discuss the proposal. Stocks moved higher as traders anticipate a swift passage of the plan.

Daily Market Update 9/24/08

Rates inched higher Wednesday as debate continued over the proposed $700 billion government rescue package. Fed Chairman Bernanke, testifying before the Joint Economic Committee, called for Congress to "act quickly to address the grave threats to financial stability". Opposition to the proposal has been growing among members of both parties and a quick resolution now appears less likely. In economic news, Existing Home Sales fell a larger than expected 2.2% in August. Year-to-date sales were down 10.7% from August 2007. Meanwhile, the median price fell 9.5% from a year earlier. Durable Goods Orders and New Home Sales figures will be released tomorrow.

Daily Market Update 9/23/08

Mortgage rates eased slightly Tuesday as traders await further news on the proposed $700 billion government bailout of the financial industry. Fed Chairman Bernanke and Treasury Secretary Paulson urged Congress to act swiftly to approve the plan. Stocks moved modestly higher. Oil prices stabilized at about $108 pb after soaring yesterday. No economic data will be released today.

Daily Market Update 9/22/08

Interest rates rose Monday as investors continue to work through the implications of the government's financial rescue plan. The unexpected increase in the supply of debt to fund the plan is hurting mortgage-backed securities and Treasury markets. Stocks and the dollar were sharply lower. No economic data will be released today.

Daily Market Update 9/19/08

Mortgage rates were little changed Friday as traders turned their focus to the broad relief program announced by the Treasury Department late yesterday. Specific details remain sketchy, but a government entity will be established to acquire underperforming mortgage assets from financial institutions. This will remove troubled assets and replace them with fresh capital for future lending opportunities. Major elements of the plan will require Congressional approval. Mortgage-backed securities have remained volatile in what has proven to be a truly historic week in financial markets. The economic calendar will be light next week with the exception of Durable Good Orders, to be released Thursday.