Daily Market Update 3/30/09

Mortgage rates inched lower again Monday as mortgage-backed securities markets benefited from a slide in stock prices. Oil prices fell below $50 per barrel on news from the ailing automobile industry. The dollar moved higher against the euro. No economic data will be released today.

Daily Market Update 3/27/09

Mortgage rates inched lower Friday as stock prices retreated. Personal Income declined 0.2% in February, a bit more than forecast, as job losses mounted. Consumer Sentiment rose slightly in March, but remained at low levels. The Core PCE price index, the preferred measure of inflation by the Fed, increased at a modest 1.8% annual rate, which was good news for mortgage-backed securities markets. The dollar moved higher, oil prices declined. Several major economic reports are due out next week, including the Chicago Purchasing Managers Index on Tuesday, the Institute for Supply Management manufacturing index Wednesday, and Non-farm Payrolls for March on Friday.

Daily Market Update 3/26/09

Rates held steady Thursday as fourth quarter GDP and weekly Jobless Claims came in close to expectations. Stocks inched higher. Treasury Secretary Timothy Geithner announced plans to expand Federal oversight of large hedge funds, private equity firms, and derivatives. Public outrage over the AIG debacle may bring additional regulation of non-bank firms. Retail mortgage rates remain stubbornly high relative to mortgage-backed securities' yields due to high refinancing demand. Borrowers may wish to consider waiting until their application is through underwriting before locking their rate, as short-term locks, such as 15 days, are priced about 1/4% to 3/8% below longer-term locks.

Daily Market Update 3/25/09

Mortgage rates were unchanged Wednesday following the release of stronger than expected economic data. Durable Goods Orders rose 3.4% in February, far above a forecast. New Home Sales rose 4.7% last month, driven by low interest rates, falling home prices, and the $8,000 first-time homebuyer tax credit. A small decline had been anticipated. Some analysts see these reports as further evidence the economy has begun to stabilize. Stocks moved higher on the data. In other news, the Fed began purchasing long-term US Treasurys today in an effort to hold down interest rates. Mortgage applications spiked last week as refinance activity rose sharply. Processing times slowed due to capacity limitations.

Daily Market Update 3/24/09

Mortgage rates were little changed Tuesday in the wake of yesterday's huge stock market rally. Investors will be watching the results of this afternoon's 2-year Treasury auction. Fed Chairman Bernanke and Treasury Secretary Geithner testified before Congress this morning calling for increased regulation of the banking industry. Stocks were modestly lower. No economic data will be released today.

Daily Market Update

Mortgage rates were little changed Monday as stocks rallied following the release of plans by the Treasury Department to buy troubled assets from banks. The Treasury will partner with private firms to purchase securities backed by sub-prime mortgages allowing banks to remove certain troubled assets from their books. In economic news, Existing Home Sales rose unexpectedly in February, driven by bargain prices, low mortgage rates, and the $8,000 first-time homebuyer tax credit. No other economic data will be released today.

Daily Market Update 3/20/09

Mortgage rates inched higher Friday in a relatively quiet session. Borrowers may benefit by waiting to lock in, as short-term locks, for periods such as 15 days, are priced much more favorably than longer-term locks. This is a function of the industry's limited capacity to process existing refinance volume. Once the loan is approved and ready for closing the borrower is able to take advantage of current market rates that are not priced artificially high in an effort to slow the influx of new business. In economic news, stocks were little changed. The dollar rebounded after having fallen sharply following the Fed's announcement of plans to purchase long-term Treasurys and mortgage-backed securities. Data on Existing Home Sales will be released next Monday. New Home Sales and Durable Goods Orders will be released Wednesday.