Daily Market Update 3/16/2010

Rates were little changed Tuesday ahead of this afternoon's Fed statement. The Federal Open Market Committee (FOMC) of the Federal Reserve will wrap up their meeting at about 2:15 PM. While no rate change is expected, if the Fed does not renew their pledge to keep rates low "for an extended period" (usually seen as at least six months), mortgage-backed securities markets may react strongly. In economic news, February Housing Starts fell 6%, close to forecast. Building Permits, a leading indicator, fell 2%. Severe winter storms in much of the US may have been a factor.

Daily Market Update 3/15/10

Mortgage rates were unchanged Monday ahead of tomorrow's FOMC meeting. In economic news, February Industrial Production increased 0.1%, slightly above forecast. Stocks moved lower on concerns over the impact of proposed financial reform legislation. No other data will be released today.

Daily Market Update 3/12/10

Mortgage rates inched higher Friday as February Retail Sales rose 0.3%, exceeding forecast by a wide margin. Mortgage-backed securities (MBS) recovered partially from early losses following disappointing data on Consumer Sentiment, which fell unexpectedly last month. Next week will be busy in terms of new economic data, and may be volatile for MBS markets. Figures on Industrial Production will be released Monday, the Fed will hold an FOMC meeting Tuesday to discuss monetary policy, the Producer Price Index (PPI) comes out on Wednesday, and the Consumer Price Index (CPI) on Thursday. No other data will be released today.

Daily Market Update 3/11/10

Rates were little changed Thursday as weekly Jobless Claims came in close to expectations. The January Trade Deficit came in below forecast on lower fuel demands and weaker than expected aircraft and automobile imports. Stocks were mixed. There will be a 30-year Treasury auction at 1:00 PM. February Retail Sales figures will be released tomorrow.

Daily Market Update 3/10/10

Mortgage rates held steady Wednesday ahead of this afternoon's auction of 10-year Treasuries. The Mortgage Bankers Association weekly purchase activity index increased by 6%, while average 30-year fixed rates rose last week to 5.01% with 0.7 points. No economic data will be released today.

Daily Market Update 3/9/10

Mortgage rates were little changed in quiet trading Tuesday ahead of this week's Treasury auctions. The Treasury will auction 3-year notes today, 10-year notes tomorrow, and 30-year bonds on Thursday. Stocks were mixed. No economic data will be released today.

Daily Market Update 3/5/10

Rates were steady, to slightly higher, Friday following release of the February Non-farm Payrolls report. The economy lost 36,000 jobs last month, less than forecast. The Unemployment Rate remained unchanged at 9.7%. The payrolls figures and the unemployment rate are calculated from two separate sets of data. The payrolls report focuses on larger companies, while the unemployment survey covers all companies. The unemployment survey showed an increase of 308,000 jobs in February, indicating that smaller companies were the source of significant job gains. Investors were surprised by the strength of today's data, and mortgage-backed securities (MBS) fell after the news. Stocks moved higher. Next week will be relatively quiet in terms of new economic data, with the exception of Friday's Retail Sales report. MBS markets are likely to be driven mainly by large Treasury auctions of 3-, 10-, and 30-year securities beginning Tuesday.