Daily Market Update 11/28/08

Mortgage rates were little changed Friday in a shortened session. The mortgage-backed securities market will close at 2:00 PM et. Stocks were mixed. No major economic reports are due out today.

Daily Market Update 11/26/08

Mortgage rates improved slightly Wednesday after having risen Tuesday afternoon. Rates improved dramatically yesterday morning following the Fed's announcement of plans to purchase mortgage-backed securities directly from Fannie Mae and Freddie Mac. Durable Goods Orders plummeted 6.2% in October, far greater than expected. President-elect Obama tapped former Fed Chief Paul Volcker to head a special economic advisory board. Volcker is highly regarded in the financial markets and by both major political parties. Bond markets will close at 2:00 PM today for the Thanksgiving Holiday.

Daily Market Update 11/25/08

Mortgage rates fell sharply Tuesday as the Fed and Treasury announced a new program to purchase up to $500 billion in mortgage-backed securities from Fannie Mae and Freddie Mac. This was the original proposal for the $700 billion TARP rescue, but the uses of the funds shifted before any mortgages were purchased. The goal of the new program is to lower mortgage interest rates. In other economic news, today's downward Gross Domestic Product revision matched consensus and had little impact. Stocks moved higher.

Daily Market Update 11/24/08

Mortgage rates were little changed Monday while Treasury rates moved higher. Stock markets have reacted favorably to the selection of several key positions within President-elect Obama's economic team, among them Timothy Geithner as Treasury Secretary, Lawrence Summers to head the National Economic Council, and Bill Richardson as Commerce Secretary. The government announced plans yesterday to guarantee $306 billion of troubled assets held by Citigroup, one of the world's largest financial institutions. The National Association of Realtors reported sales of existing homes fell 3.1% last month, more than expected. The median price fell 11.3% from the same period last year reflecting a large number of foreclosures and distressed sales. Key economic reports due out this week include tomorrow's release of revised third quarter GDP figures and Wednesday's Durable Goods Orders.

Daily Market Update 11/21/08

Mortgage rates inched higher Friday as stocks attempted to recover from steep losses earlier in the week. Treasury markets continued to out-perform mortgages, with yesterday's yield on the 10-year Treasury hitting 2.99%, the lowest level since 1962. The unusually wide spread between Treasury and mortgage rates is resulting from uncertainty among traders over the government's plan for Fannie Mae and Freddie Mac. Fannie and Freddie both announced yesterday they would suspend certain foreclosures until 1/9/09 in an effort to restructure borrowers' payments. Rates are likely to remain volatile next week, with several key economic reports due out before the Thanksgiving Holiday.

Daily Market Update 11/20/08

Mortgage rates eased Thursday as Initial Jobless Claims reached a 16-year high. Stocks continued their descent after closing below 8,000 yesterday for the first time since 2003. Oil prices fell to $50 per barrel, a whopping 66% decline since July. Congress failed to reach an agreement on a proposed $25 billion bailout for the Big Three domestic automobile manufacturers as debate continues over the appropriate source of funding for the plan.

Daily Market Update 11/19/08

Mortgage rates remained little changed following this morning's Consumer Price Index (CPI) report for October. Consumer Prices declined 1.0% last month due to falling energy prices. The more closely watched core rate, which excludes food and energy components, fell 0.1%, exceeding consensus. Minutes from the October Federal Open Market Committee meeting will be released today at 2:00 PM et.