Daily Market Update 6/28/11

Mortgage rates continued their upward trend Thursday as the Fed's quantitative easing program is scheduled to end today.  Investors have grown less concerned about the risks posed by Greece following passage of new austerity measures, causing funds to be shifted from bonds to stocks over the past two days, pushing rates higher.  Investors have also been reluctant to add to bond positions until the impact of the decreased demand from Fed purchases is known.  In economic news, weekly Jobless Claims fell slightly to 428,000, above forecast.  The Chicago Purchasing Managers Index rose to 61.1, easily beating expectations.  Readings above 50.0 indicate expansion in the manufacturing sector of the economy.  Stocks moved sharply higher.  No other key data will be released today.

Daily Market Update 6/24/11

Mortgage rates were little changed Friday.  In economic news, May Durable Goods Orders rose 1.9%, beating forecast.  First quarter GDP was revised slightly higher to 1.9% from 1.8%.  Markets showed little reaction to the data.  Stocks moved lower.  Next week will be relatively quiet in terms of new data.  The Core PCE price index, a key measure of inflation, will be released on Monday.  The Treasury will hold auctions of 2-, 5-, and 7-year notes over three days beginning on Tuesday.  The market will close early on Friday for Independence Day weekend.  No other data will be released today.

Daily Market Update 6/23/11

Rates dipped Thursday as a sharp drop in global stock markets boosted Treasurys and mortgage-backed securities.  Continued uncertainty over the Greek debt situation and reluctance of the Fed to provide additional economic stimulus weighed heavily on stocks.  In economic news, weekly Jobless Claims rose to 429,000, above the consensus forecast.  New Home Sales fell 2.1%, a bit less than expected.  No other key data will be released today.

Daily Market Update 6/22/11

Rates inched lower Wednesday ahead of this afternoon's Fed statement and news conference.  The Federal Open Market Committee (FOMC) of the Federal Reserve is currently meeting to discuss monetary policy.  Analysts do not expect the Fed to raise rates or tighten policy while the Unemployment Rate is high.  Investors are likely to focus on the Fed's outlook for the economy.  Last night, Greek Prime Minister George Papandreou survived a confidence vote, clearing the way for further austerity measures.  The Mortgage Bankers Association weekly purchase activity index fell 2.8%, while the refinancing activity index declined by 7.2%.  Average reported 30-year fixed rates rose to 4.57%, not including fees.  Today's Fed Press Conference will take place at 2:15 PM.

Daily Market Update 6/21/11

Rates inched higher Tuesday as a global stock market rally hurt mortgage-backed securities.  In economic news, May Existing Home Sales fell by 3.8%, to the lowest level in six months, in line with expectations.  Investors are now turning their attention to tomorrow's FOMC meeting of the Fed.  While no rate changes are expected, analysts will be seeking clues about the timing of future shifts in monetary policy.  No other data will be released today.

Daily Market Update 6/20/11

Rates were little changed Monday.  No economic data will be released today.

Daily Market Update 6/17/11

Mortgage rates were little changed Friday.  Stocks moved higher on optimism that European officials are seeking quick action to stabilize Greece and the euro.  In economic news, Leading Indicators rose 0.8%, beating expectations.  Meanwhile, Consumer Sentiment declined to 71.8, below forecast.  The main event next week will be Wednesday's FOMC meeting of the Fed.  Also next week, May Existing Homes Sales will be released on Tuesday and New Home Sales on Thursday.  No other data will be released today.