Daily Market Update 10/2/13

Mortgage rates were little changed Tuesday following the release of weaker than expected economic data.  This morning, payrolls firm ADP estimated private sector job growth of 166,000 in September, below the consensus forecast of 180,000.  Stocks moved lower.  No other key data will be released today.

Daily Market Update 10/1/13

Rates held steady Tuesday as the partial government shutdown began.  In economic news, the Institute for Supply Management manufacturing index rose unexpectedly to 56.2, beating forecast.  Construction Spending data was due out this morning but will be delayed due to the shutdown.  The status of Friday's key Employment Report for September remains uncertain.  New and existing mortgage applications will continue to be processed, but certain documentation requirements, such as income re-verification through the IRS, could delay closings if the shutdown continues for several days.  Debt ceiling negotiations are potentially a much bigger issue, as a U.S. Government default on its debt would wreak havoc on the economy.  The debt limit is due to be reached in about two weeks.  Hopefully the two parties will come to their senses sometime before then.

Daily Market Update 9/30/13

Rates were little changed Monday as investors remained focused on the budget impasse in Washington.  Stocks were sharply lower.  Stronger than expected economic data had little impact on markets.  This morning, the Chicago Purchasing Manager's Index rose to 55.7, beating forecast.  Readings above 50.0 indicate expansion in manufacturing in the Midwest Region.  No other key data will be released today.

Daily Market Update 9/27/13

Mortgage rates trended lower Friday as lack of progress in debt ceiling negotiations hurt stocks and boosted mortgage-backed securities.  This morning, the August Core PCE index, the Fed's preferred measure of inflation, rose 0.1%, matching forecast, and was just 1.2% higher than one year ago.  Personal Income increased 0.4%, in line with expectations.  Consumer Sentiment came in at 77.5, a bit higher than expected.  The Federal Housing Administration (FHA) announced it will need $1.7 billion from the Treasury to help cover losses on its reverse mortgage program for seniors.  No other key data will be released today.

Daily Market Update 9/26/13

Rates remained steady Thursday as mortgage-backed securities held onto recent gains.  Conventional 30-year fixed rates have now decreased by 3/8% over the past two weeks.  This morning, weekly Jobless Claims fell unexpectedly to 305,000, far below the consensus forecast of 330,000.  The computer glitches in two states that caused the data to be distorted in the prior two reports appears to have been corrected.  Pending Home Sales declined by 1.6%, a bit more than expected.  Stocks moved higher.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/25/13

Mortgage rates held steady Wednesday as the market showed little reaction to today's economic data.  August Durable Goods Orders rose 0.1%, slightly above expectations.  New Homes Sales increased by 7.9% to 421,000 annual units, in line with forecast.  The Mortgage Bankers Association weekly purchase activity index rose 7.0%, while the refinancing activity index increased 4.9%.  Average reported conventional 30-year fixed rates fell to 4.62%, not including fees.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/24/13

Rates inched lower Tuesday, largely reflecting yesterday's late rally in mortgage-backed securities.  In economic news, the July S&P/Case-Shiller 20-city home price index rose 0.6%, a bit less than forecast, and was 12.4% higher than one year ago.  Consumer Confidence fell to 79.7, close to expectations.  Results from today's 2-year Treasury auction will be released at 1:00 PM.