Daily Market Update 6/29/10

Rates held at historic low levels Tuesday following weaker than expected economic data. Consumer Confidence fell to 52.9, far below the consensus forecast of 62.0. Stocks moved sharply lower. No other data will be released today.

Daily Market Update 6/28/10

Mortgage rates inched lower Monday, reaching new record lows. Personal Income increased 0.4% in May, close to expectations. The Core PCE price index, the Fed's preferred inflation indicator, rose at a tame 1.3% annual rate, below the Fed's target range of 1.5% to 2.0%. No other data will be released today.

Daily Market Update 6/25/10

Rates were little changed Friday in volatile trading as investors tried to analyze the impact of the financial regulatory bill that was reconciled in committee last night. The final bill is expected to pass the full House and Senate and be signed into law next week. Also of note, the Jobless Bill containing an extension of the homebuyer tax credit "close-by" deadline to September 30 failed to pass yet again. In economic news, final first quarter GDP was revised lower to +2.7% from +3.0%. Consumer Sentiment rose to 76.0, slightly above consensus forecast. Next week will be busy, with the release of the Chicago Purchasing Managers Index on Wednesday, the Institute for Supply Management manufacturing index on Thursday, and the closely-watched Employment Report for June on Friday. No other data will be released today.

Daily Market Update 6/23/10

Rates drifted lower Wednesday ahead to this afternoon's Fed announcement. The Federal Open Market Committee (FOMC) is meeting today to discuss monetary policy. No rate changes are expected. In economic news, New Home Sales fell a record 33% in May to 300,000 annual units, far below forecast. Expiring homebuyer tax credits were blamed for the steep decline. The Mortgage Bankers Association weekly purchase activity index fell 1%, while the refinancing activity index decreased by 7% in spite of the year's lowest rates. Average reported rates for the week fell to 4.75% for 30-year fixed mortgages.

Daily Market Update 6/22/10

Mortgage rates eased to their lowest levels of the year Tuesday on weaker than expected economic data. The National Association of Realtors reported Existing Home Sales fell 2.2% in May. A gain of 5.5% had been forecast. Results from today's 2-year Treasury auction will come out at 1:00 PM. Investors will now likely turn their focus to tomorrow's FOMC meeting of the Federal Reserve. No rate changes are expected, but the statement issued following the meeting may offer clues about the direction of future monetary policy.

Daily Market Update 6/21/10

Rates inched higher Monday following China's announcement that it will allow gradual adjustments to the value of its currency, the yuan. A stronger yuan is expected to be positive for global economic growth, and stock markets rallied on the news, hurting Treasurys and mortgage-backed securities. No economic data will be released today.

Daily Market Update 6/18/10

Mortgage rates remained near record lows Friday in quiet trading. No key economic data will be released today. Next week will bring a slew of economic news, and rates may be volatile. Existing Home Sales come out on Tuesday, New Home Sales and the Fed's FOMC meeting on Wednesday, Durable Goods Orders on Thursday, and final first quarter GDP figures on Friday. The Treasury will hold large auctions of 2-, 5-, and 7-year notes beginning Tuesday.