Daily Market Update 6/30/09

Rates inched higher Tuesday as mortgage-backed securities (MBS) remained volatile, partly due to light trading volume during this holiday-shortened week. Consumer Confidence declined unexpectedly, hurting stocks and providing support to MBS markets. The Chicago Purchasing Managers Index came in close to forecast. No other economic data will be released today.

Daily Market Update 6/29/09

Mortgage rates held steady Monday and have now improved about 1/2% since June 11. This morning Chinese officials reported that China will not pull back from buying US Treasury securities. Investors have recently been concerned that foreign central banks would scale back their purchases, causing upward pressure on rates. No economic data will be released today.

Daily Market Update 6/26/09

Mortgage rates eased Friday as mortgage-backed securities (MBS) markets rallied late Thursday. In economic news, Personal Income grew 1.4% in May, well above expectations. Core PCE, the Fed's preferred measure of inflation, rose a tame 0.1%, matching forecast. Consumer Sentiment reached its highest reading since February 2008. Personal Savings came in at 6.9% last month, the highest level in 15 years. Several key economic reports are due out next week, beginning with the Chicago Purchasing Managers Index Tuesday, the Institute for Supply Management manufacturing index Wednesday, and Non-farm Payrolls Thursday. Markets will be closed Friday for the July 4th Holiday.

Daily Market Update 6/24/09

Mortgage rates inched lower Thursday as weekly Jobless Claims rose to 627,000, above forecast. Final first quarter GDP was revised down to -5.5% from -5.7%. This afternoon's Treasury auction of 7-year notes was met with strong demand, pushing mortgage-backed securities higher. Stocks rallied. Tomorrow's economic data includes Personal Income, the core PCE Index, and Consumer Sentiment.

Daily Market Update 6/24/09

Mortgage rates held steady Wednesday morning, but came under pressure following the Federal Open Market Committee (FOMC) meeting. The Fed indicated its plan for the purchase of Treasurys and mortgage-backed securities (MBS) would remain unchanged. Investors had hoped for an increase in Fed purchases of MBS's to drive down rates. The FOMC said it "expects that inflation will remain subdued for some time". In economic news, May Durable Goods Orders rose 1.8%, far above consensus forecast of -0.5%. New Home Sales fell 0.6%, below expectations. Stocks were mixed. The MBS market will likely remain volatile while investors digest the latest policy decisions by the Fed.

Daily Market Update 6/23/09

Mortgage rates were little changed Tuesday. Existing Home Sales rose 2.4% in May, but fell short of expectations. The Treasury will begin its $104 billion, three-day auction this afternoon at 1:00 PM et. No other economic data will be released today.

Daily Market Update 6/22/09

Rates moved lower Monday as the World Bank raised its forecast for global economic contraction for 2009 to 2.9% from 1.7%. Stocks fell sharply. This may be a volatile week for mortgage-backed securities (MBS) with large Treasury auctions each of the next three days and the Fed meeting Wednesday. Durable Goods Orders, an important indicator of overall economic activity, will be released Wednesday. The Core PCE index, the Fed's preferred measure of inflation, will come out on Friday. No economic data will be released today.