Daily Market Update 1/28/11

Rates were little changed Friday, ending the week close to where they started. In economic news, preliminary Gross Domestic Product (GDP) estimates showed 3.2% growth in the economy during the fourth quarter of 2010, below the consensus forecast of +3.7%. However, consumer spending was stronger than expected, which is a positive sign for the economy in 2011. Consumer Sentiment rose to 74.2 in late January, beating expectations. Next week, the Chicago Purchasing Managers Index will be released on Monday, the Institute for Supply Management manufacturing index on Tuesday, and the closely-watched Employment Report on Friday. No other key data will be released today.

Daily Market Update 1/27/11

Rates held steady Thursday on mixed economic data. Weekly Jobless Claims jumped to 454,000, well above forecast, however snowstorms last week may have distorted the results. December Durable Goods Orders fell by 2.5%. An increase of 1.5% had been expected. Pending Home Sales rose 2%, beating expectations. Results from today's 7-year Treasury auction will be released at 1:00 PM. No other key data will be released today.

Daily Market Update 1/26/11

Mortgage rates were little changed Wednesday as mortgage-backed securities markets gave back yesterday afternoon's gains. Last night, President Obama called for a five-year budget freeze on non-security discretionary spending, but investors expressed doubt that the move would have a significant impact on the deficit. Separately, the non-partisan Congressional Budget Office reported that the 2011 deficit will likely top $1.5 trillion. In economic news, December New Home Sales rose 18% to the highest level in 8 months, beating forecast. The Mortgage Bankers Association weekly purchase activity index fell 9%, while the refinancing activity index declined 15%, to the lowest level since last January. Average reported 30-year fixed rates rose to 4.80%, not including fees. Results from today's 5-year Treasury auction will be released at 1:00 PM. Today's FOMC meeting of the Fed will wrap up at about 2:15 PM. Investors are expecting an upgrade on the performance of the economy, but no change in the direction of monetary policy.

Daily Market Update 1/25/11

Mortgage rates held steady Tuesday in another day of volatile trading. In economic news, Consumer Confidence rose more than expected to a reading of 60.6, the highest level in eight months. Analysts credited recent improvements in the job market for the increase. Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 1/24/11

Rates were little changed Monday in volatile trading ahead of a big week for economic news. No data will be released today, but Wednesday's Fed meeting, Friday's GDP report, and three large Treasury auctions may influence trading in mortgage-backed securities.

Daily Market Update 1/21/11

Rates were little changed Friday in volatile trading. No economic data will be released today. Next week will be busy, beginning with Wednesday's FOMC meeting of the Fed. While no rate changes are expected, investors will be watching closely for clues about the future direction of monetary policy. December New Home Sales figures will be released on Wednesday, Pending Home Sales and Durable Goods Orders on Thursday. Advanced fourth quarter Gross Domestic Product (GDP) estimates will come out on Friday. Also next week, the Treasury will hold large auctions of 2-, 5-, and 7-year notes over three days, beginning Tuesday. The Obama Administration is due to release a report on the future of Fannie Mae and Freddie Mac in late January. There will be considerable debate in coming months over the proper role of the federal government in the housing finance industry.

Daily Market Update 1/20/11

Mortgage rates inched higher Thursday following the release of stronger than expected economic data. Weekly Jobless Claims fell to 404,000, below the consensus forecast of 425,000. Investors are hopeful that we are now in an average range close to the 400,000 level, down from the 450,000 level maintained throughout much of 2010. Existing Home Sales surged in December to 5.28 million annual units, a seven month high, easily beating expectations. The median home price fell 1% from one year earlier, to $168,800. Leading Indicators rose 1.0%. An increase of 0.6% had been forecast. No other key data will be released today.