Daily Market Update 5/31/11

Mortgage rates were little changed Tuesday.  In economic news, the Chicago PMI manufacturing index declined to 56.6, below the consensus forecast of 62.5.  Readings above 50.0 represent an expansion of the manufacturing sector of the economy.  The Conference Board reported that Consumer Confidence fell to 60.8 in May from 65.4 in April.  Higher fuel prices and increased Jobless Claims were blamed for the decline.  The March Case-Shiller 20-city home price index fell by 0.8% from February and was 3.6% lower than one year ago, pushing home prices to their lowest levels since March 2003.  No other key data will be released today.

Daily Market Update 5/27/11

Rates were little changed Friday in volatile trading.  In economic news, the April Core PCE price index increased at a low 1.0% annual rate, in line with expectations.  Personal Income rose 0.4%, matching the consensus forecast.  Pending Home Sales plunged 11.6% to the lowest level in seven months.  Consumer Sentiment rose to 74.3, slightly higher than expected.  The big economic news next week will be Friday's release of Non-farm Payrolls and the Unemployment Rate for May.  No other key data will be released today.

Daily Market Update 5/26/11

Rates moved lower Thursday following the release of weaker than expected economic data.  Weekly Jobless Claims rose to 424,000, above the consensus forecast of 400,000.  First quarter GDP was unchanged at 1.8%.  Economists had expected an upward revision to 2.0%.  Stocks moved lower.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/25/11

Rates were little changed Wednesday in volatile trading.  This morning, the Commerce Department reported that April Durable Orders fell 3.6% from March, more than expected.  European Central Bank officials stated that Greece must adopt tough austerity measures to remain a member of the Euro zone.  The Mortgage Bankers Association weekly purchase activity index rose by 2%, while the refinancing activity index increased by 1%.  Average reported 30-year fixed rates rose to 4.69% last week.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/24/11

Rates edged higher Tuesday reflecting movement in mortgage-backed securities markets late Monday.  In economic news, April New Home Sales rose 7.3%, beating expectations.  No other key data will be released today.

Daily Market Update 5/23/11

Mortgage rates inched lower Monday as weakness in global stock markets boosted mortgage-backed securities.  Stocks fell sharply following downgrades of Greek and Italian debt by ratings agencies.  No economic data will be released today.

Daily Market Update 5/19/11

Mortgage rates moved higher Thursday reflecting a late sell off of mortgage-backed securities (MBS) on Wednesday.  Minutes from last month's FOMC meeting, released yesterday, indicate that Fed officials generally oppose additional quantitative easing measures and suggest that a return to a more normal monetary policy will include asset sales and rate hikes.  The Fed gave no indication of the timing of any policy tightening, but said the selling period for current MBS holdings may be five years.  In economic news, weekly Jobless Claims fell to 409,000, below forecast.  Existing Homes Sales declined unexpectedly by 0.8% to 5.05 million units in April.  Leading Indicators rose 0.3%, a bit less than expected.  No other key data will be released today.