Daily Market Update 1/30/09

Mortgage rates were steady to slightly lower Wednesday in light trading. In economic news, the Chicago Purchasing Managers Index, a measure of manufacturing activity, jumped to 60, well above the consensus forecast of 55. A reading above 50 indicates expansion in the manufacturing sector. The mortgage-backed securities (MBS) market will close early tomorrow in observance of the New Year's holiday. Next week may be volatile, with several key reports due to be released, beginning with the ISM manufacturing index on Monday, minutes from the December FOMC meeting of the Fed on Wednesday, and the Employment Report for December on Friday. No other data will be released today.

Daily Market Update 12/29/09

Rates held steady Tuesday ahead of this afternoon's 5-year Treasury auction. Consumer Confidence rose to 52.9 in December, from 50.6 last month, in line with expectations. The S&P/Case-Shiller Home Price Index, covering 20 major metropolitan areas, was unchanged in October following 4 consecutive monthly increases. Stocks moved modestly higher. No other economic data will be released today.

Daily Market Update

Rates moved higher Monday, driven by concerns over growing government debt and higher oil prices. The 30-year fixed Fannie Mae required net yield is now at the highest level since August 24. No economic data will be released today. although there will be a Treasury auction of 2-year notes this afternoon at 1:00 PM et.

Daily Market Update 12/23/09

Mortgage rates were little changed Wednesday following the release of weaker than expected economic data. Personal Income and Consumer Sentiment both rose in November, but fell short of forecast. New Home Sales declined sharply to 355,000 units, well below expectations, to a 7 month low. The Mortgage Bankers Association weekly purchase activity index fell 12%, while the refinancing activity index decreased by 10%. The Treasury will auction a record-tying $118 billion of 2-, 5-, and 7-year notes next week. No other data will be released today.

Daily Market Update 12/22/09

Mortgage rates rose again Tuesday, having now increased by about 3/8% since Friday. Following last week's Fed meeting, investors have given up hope that the Fed will extend its mortgage-backed securities (MBS) purchase program, causing MBS yields to rise. In economic news, third quarter GDP was revised down to 2.2%, far below the consensus forecast of 2.7%. Existing Home Sales increased 7.4% in November to the highest level since February 2007 as first-time homebuyers rushed to take advantage of the $8,000 tax credit that had been due to expire November 30. It has since been extended to include homes under contract by 4/30/2010 and closed by 6/30/2010. Stocks moved higher. No other data will be released today.

Daily Market Update 12/21/09

Rates moved higher Monday as a rally in the stock market has hurt mortgage-backed securities and Treasuries. Investors are also expressing concerns over swelling levels of government debt. The supply of marketable Treasury debt has risen by $1.37 trillion this year, a 24% increase. No economic data will be released today.

Daily Market Update 12/18/09

Rates were little changed Friday, having moved slightly lower for the week. No economic data will be released today. Next week's schedule includes final third quarter GDP figures and Existing Home Sales on Tuesday, Core PCE (the Fed's preferred measure of inflation) and Consumer Sentiment on Wednesday, and Durable Goods Orders Thursday. Sudden price movements can take place during the second half of December due to extremely light trading. The market will close early Thursday for the Christmas Holiday.