Daily Market Update 10/31/12

Rates held steady Wednesday in quiet trading as U.S. stock and bond markets resumed trading.  In economic news, the Chicago Purchasing Managers Index rose to 49.9, short of forecast.  Readings below 50.0 indicate contraction in the manufacturing sector.  No other data will be released today.

Daily Market Update 10/30/12

Mortgage rates were unchanged Tuesday as U.S. financial markets remained closed for a second day due to Hurricane Sandy.  In economic news, the S&P/Case Shiller 20-city home price index rose 0.5% in August, in line with expectations, and were 2.0% higher than one year ago.  No other data will be released today.  Markets will resume operation on Wednesday.

Daily Market Update 10/29/12

Rates were little changed Monday in light trading as U.S. stock markets closed due to Hurricane Sandy.  Bond markets are scheduled to close at noon.  In economic news, the September Core PCE price index, the Fed's preferred measure of inflation, rose 0.1%, matching expectations.  Personal Income increased 0.4%, slightly below forecast.  No other key data will be released today.

Daily Market Update 10/26/12

Mortgage rates held steady Friday.  In economic news, preliminary third quarter Gross Domestic Product (GDP) figures showed economic growth of 2.0%, slightly above forecast, and up from an anemic 1.3% growth rate for the second quarter.  A 2% growth rate is generally consistent with a steady labor market, but insufficient for significant improvement.  Consumer Sentiment came in at 82.6, the highest level since September 2007, but below expectations.  Stocks were mixed.  Next week, the Core PCE price index, the Fed's preferred measure of inflation, will be released on Monday, the Institute for Supply Management manufacturing index will come out on Thursday, and the closely-watched Non-farm Payrolls and Employment Report for October will be released on Friday.  No other key data will be released today.

Daily Market Update 10/24/12

Mortgage rates faced upward pressure Wednesday ahead of this afternoon's Fed statement.  In economic news, New Home Sales rose 5.7% to 389,000 annual units, slightly above forecast, to the highest level in two years.  The Mortgage Bankers Association weekly purchase activity index fell by 8.3%, while the refinancing activity index declined by 12.9%.  Average reported 30-year fixed rates rose to 3.63%, not including fees.  The Fed announcement will come out at 2:15 PM.  No major changes in monetary policy are expected.

Daily Market Update 10/23/12

Rates inched lower Tuesday as mortgage-backed securities were boosted by weakness in stocks.  This morning, stock prices fell sharply following weaker than expected corporate earnings reports.  Separately, the New York Times reported that Fed Chairman Ben Bernanke will probably not seek a third term, regardless of who wins the presidential election.  Mitt Romney has already indicated he will replace Bernanke if he wins the Presidency.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 10/22/12

Rates were little changed Monday in quiet trading.  No economic data will be released today.  Investors are mostly looking ahead to this week's Fed meeting that wraps up on Wednesday.