Daily Market Update 8/31/11

Rates were little changed Wednesday in volatile trading.  This morning, the Chicago PMI manufacturing index fell to 56.5, beating forecast.  Payroll firm ADP estimated a net gain of 91,000 private sector jobs in August ahead of this Friday's Employment Report, a bit less than expected.  Factory Orders rose 2.4%, led by the transportation component.  Stocks moved higher.  The Mortgage Bankers Association weekly purchase activity index increased by 0.9%, while the refinancing activity index decreased by 12.2%.  Average reported 30-year fixed rates fell to 4.32%, not including fees.  No other key data will be released today.

Daily Market Update 8/30/11

Mortgage rates eased slightly Tuesday following the release of weaker than expected economic data.  Consumer Confidence plummeted in August to 44.5, its lowest reading since April 2009, and well below the consensus forecast of 52.0.  Federal Reserve Bank of Chicago President Charles Evans said in an interview this morning that he would "favor more accommodation" by the Fed, citing weak economic growth in the first half of the year.  Minutes from last month's FOMC meeting of the Fed will be released at 2:00 PM.

Daily Market Update 8/29/11

Rates moved higher Monday as a rally in global stock markets hurt mortgage-backed securities.  Investors were relieved that damage from Hurricane Irene was less severe than had been expected.  In economic news, the July Core PCE price index, one of the Fed's preferred measures of inflation, increased 0.2% from June, matching expectations.  Personal Income rose by 0.3%, slightly below the consensus forecast.  Pending Home Sales fell 1.3%, a bit less than expected.  No other key data will be released today.

Daily Market Update 8/26/11

Mortgage rates inched lower Friday as second quarter GDP was revised down to 1.0% from 1.3%.  In a much-anticipated speech this morning, Fed Chairman Ben Bernanke said that the Fed will consider additional monetary stimulus measures at its September meeting and will implement them if appropriate, but that fiscal policy changes by lawmakers are needed to help boost the economy and labor market.  He gave no indication that the Fed will loosen monetary policy.  The big event next week will be Friday's Employment Report for August.  Also next week, the Institute for Supply Management manufacturing index will be released on Thursday.  No other key data will be released today.

Daily Market Update 8/25/11

Rates held steady Thursday as mortgage-backed securities recovered from losses that occurred late Wednesday.  This morning, weekly Jobless Claims rose to 417,000, above forecast, but most of the increase resulted from a labor strike at Verizon.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 8/24/11

Mortgage rates were little changed Wednesday.  In economic news, July Durable Goods Orders rose 4.0%, well above the consensus forecast of +2.0%.  Excluding the volatile transportation component, orders rose 0.7%, also beating expectations.  The Federal Housing Finance Agency reported that home prices fell 5.9% during the second quarter from one year earlier, the biggest drop since 2009.  The Mortgage Bankers Association weekly purchase activity index fell 5.9%, to the lowest level since December 1996.  The refinancing activity index declined by 1.7%, as average reported 30-year fixed rates rose last week to 4.39%, not including fees.  Results from today's 5-year Treasury auction will be released at 1:00 PM.  Fed Chairman Ben Bernanke will be delivering a highly anticipated speech at the annual Fed meeting in Jackson Hole, WY on Friday.  Some analysts are expecting Bernanke to announce new economic stimulus by the Fed.

Daily Market Update 8/22/11

Mortgage rates faced upward pressure Monday as a rally in global stock markets pushed mortgage-backed securities lower.  No key economic data will be released today.