Daily Market Update 8/31/10

Mortgage rates inched lower Tuesday on mixed economic data. The Chicago Purchasing Managers Index declined more than expected to 56.7 from last month's reading of 62.3. Readings above 50.0 indicate expansion in the manufacturing sector of the economy. Meanwhile, Consumer Confidence rose to 53.5, beating forecast. Minutes from the last FOMC meeting indicate the Fed considered resuming purchases of mortgage-backed securities in an effort to push mortgage rates even lower. No other data will be released today.

Daily Market Update 8/30/10

Rates were little changed Monday as mortgage-backed securities regained most of their losses from Friday. In economic news, July Personal Income rose 0.2%, a bit less than forecast. The Core PCE price index, the Fed's preferred measure of inflation, rose at a tame 1.4% annual rate, indicating inflation is still not a concern in the near term. Stocks moved lower. No other economic data will be released today.

Daily Market Update 8/27/10

Mortgage rates held steady early Friday, but faced upward pressure following Fed Chairman Ben Bernanke's comments to central bankers from around the world at today's annual monetary symposium in Jackson Hole, Wyoming. Bernanke said the Fed "will do all that it can" to ensure that the economic recovery continues. In economic news, second quarter Gross Domestic Product (GDP) was revised down to +1.6% from +2.4%, but this was above the consensus forecast of +1.4%. Consumer Sentiment came in at 68.9, a bit below expectations. St. Louis Fed President James Bullard stated that he believes housing market activity and home prices will remain roughly flat for the time being. He also suggested that the Fed will probably not resume purchases of mortgage-backed securities (MBS). Next week will be extremely busy in terms of new economic data, which may cause volatility in the MBS market. The Chicago Purchasing Managers Index and minutes from last month's Fed meeting will be released on Tuesday, the Institute for Supply Management manufacturing index comes out on Wednesday, and the closely-watched Non-farm Payrolls report for August will be released on Friday.

Daily Market Update 8/26/10

Rates held steady Thursday as weekly Jobless Claims fell to 473,000, below the consensus forecast of 485,000. Stocks inched higher. Freddie Mac reported weekly average 30-year fixed rates of 4.36% with 0.7 "points", the lowest on record. Results from today's 7-year Treasury auction will come out at 1:00 PM. No other key economic data will be released today.

Daily Market Update 8/25/10

Mortgage rates were little changed Wednesday in spite of weaker than expected economic data. July Durable Goods Orders rose 0.3%, far below the consensus forecast of +2.5%. Meanwhile, the Commerce Department reported New Home Sales fell in July by 12.4% to an annual rate of 276,000 units, the lowest level since 1963. The Mortgage Bankers Association weekly purchase activity index rose 0.6%, while the refinancing activity index increased 5.7%. Average reported 30-year fixed rates fell to 4.55% (excluding fees), a new record low. Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/24/10

Mortgage rates inched lower as weakness in the stock market lifted mortgage-backed securities and Treasurys. Existing Home Sales tumbled 27.2% in July to a 15-year low. A decrease of 12% had been forecast. Stocks moved sharply lower. Results of today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/23/10

Mortgage rates were little changed Monday as stock prices moved modestly higher. No economic data will be released today.