Daily Market Update 5/28/10

Rates were little changed Friday as mortgage-backed securities (MBS) markets have reversed some of yesterday's losses. In economic news, the Core PCE price index, the Fed's preferred measure of inflation, increased at a low 1.2% annual rate. April Personal Income rose 0.4%, while spending was flat. May Consumer Sentiment came in at 73.6, beating expectations. The Chicago Purchasing Managers manufacturing index fell to 59.7, below forecast. The most important data due out next week will be Friday's Employment Report for May. MBS markets are likely to continue being driven by developments in the European debt crisis.

Daily Market Update 5/27/10

Rates inched higher Thursday following a rally in stocks. Today's economic data had little impact. Weekly Jobless Claims declined to 460,000, above forecast. First quarter Gross Domestic Product (GDP) was revised down to 3.0% from 3.2%. There will be a 7-year Treasury auction at 1:00 PM. No other data will be released today.

Daily Market Update 5/26/10

Rates remained near historic low levels on Wednesday, although stock market gains pressured mortgage-backed securities. April Durable Goods Orders rose 2.9%, above the consensus forecast of 1.5%. However, excluding volatile aircraft orders, the data fell short of expectations, declining by 1.0%. New Home Sales increased a solid 14.8% in April as buyers rushed to take advantage of expiring homebuyer tax credits. The Mortgage Bankers Association weekly purchase activity index fell 3%, to the lowest level since April 1997, while refinancing activity rose by 17%. There will be a 5-year Treasury auction at 1:00 PM.

Daily Market Update 5/25/10

Rates held steady Tuesday as increased tension between North and South Korea hurt stocks and helped bonds and mortgage-backed securities. Consumer Confidence rose last month to 63.3, the highest reading since March 2008, beating the consensus forecast. There will be a 2-year Treasury auction at 1:00 PM. No other key economic data will be released today.

Daily Market Update 5/24/10

Rates were little changed Monday. Stocks moved lower as investors remained focused on European debt concerns. In economic news, April Existing Homes Sales rose by a solid 7.6% as home buyers scrambled to take advantage of expiring tax credits. No other data will be released toady.

Daily Market Update 5/21/10

Mortgage rates were little changed Friday, maintaining their lowest levels of the year. Concerns about the economic situation in Europe continue to drive the market. Stocks moved sharply lower in early trading but have since recovered most of their losses. Next week, April Durable Goods Orders will be released on Wednesday and the Chicago Purchasing Managers Index on Friday. There will be large Treasury auctions of 2-, 5-, and 7-year notes beginning Tuesday. No other data will be released today.

Daily Market Update 5/20/10

Rates inched lower Thursday as global investors shifted funds away from stocks, lifting mortgage-backed securities. Weekly Jobless Claims rose to 471,000, well above the consensus forecast of 440,000. Leading Indicators fell 0.1% in April, the first decline in over a year. The Philadelphia Fed Index came in slightly below expectations. Stocks fell sharply. No other data will be released today.

Daily Market Update 5/19/10

Mortgage rates remained near record low levels Wednesday as consumer inflation came in close to expectations. The Consumer Price Index (CPI) declined -0.1% and was 2.2% higher than one year ago. Core CPI, which excludes volatile food and energy components, rose at a tame 0.9% annual rate. The Mortgage Bankers Association weekly purchase activity index fell 27%, to the lowest level since 1997, reflecting the recent expiration of homebuyer tax incentives. Stocks fell sharply. Minutes from last month's Federal Open Market Committee of the Federal Reserve will be released at 2:00 PM.

Daily Market Update 5/18/10

30-year fixed rates remained below 5% Tuesday on tame inflation and mixed housing data. The April Producer Price Index (PPI) declined unexpectedly by -0.1%. Core PPI, which excludes food and energy components, rose at a low 1.0% annual rate. April Housing Starts increased 5.8% to an 18 month high, while Building Permits, a leading indicator, fell -11.5%. Stocks moved higher. No other data will be released today.

Daily Market Update 5/17/10

Rates inched lower Monday. The Fannie Mae 30-year fixed net required yield is now at the lowest level of the year. In economic news, the Empire State regional manufacturing index declined to 19.1. Although well below forecast, readings above zero indicate expansion in the manufacturing sector. Stocks and oil prices moved lower. No other data will be released today.

Daily Market Update 5/14/10

Rates inched lower Friday as bonds and mortgage-backed securities benefited from a sharp decline in global stock markets. Investors remain worried about the European debt crisis and the possible demise of the Euro, which would hamper future economic growth. In other news, April Retail Sales rose 0.4%, above expectations. Industrial Production increased 0.8%, in line with forecast. Consumer Sentiment rose a bit less than expected. Major economic data due out next week include Tuesday's release of the Producer Price Index (PPI) and the Consumer Price Index (CPI) on Wednesday.

Daily Market Update 5/13/10

Mortgage rates remained below 5% Thursday. Freddie Mac reported that 30-year fixed rates averaged 4.93% with 0.7 points over the past week, a 5-month low. Weekly Jobless Claims fell to 444,000, close to the consensus forecast of 440,000. Retail Sales and Industrial Production data will be released tomorrow.

Daily Market Update 5/12/10

Rates were little changed Wednesday in quiet trading. In economic news, the March Trade Deficit rose to $40.4 billion to the highest level in over a year. The Mortgage Bankers Association weekly purchase activity index fell 10% as homebuyer tax credits expired April 30. There will be a 10-year Treasury auction at 1:00 PM.

Daily Market Update 5/11/10

Mortgage rates were steady, to slightly lower Tuesday, as global stock markets retreated from yesterday's strong gains. Investors are awaiting further details on the $1 trillion European Union bailout plan. No economic data will be released today, but there will be a 3-year Treasury auction at 1:00 PM.

Daily Market Update 5/10/10

Mortgage rates were relatively stable Monday considering the surge in stock prices. Rates benefited last week when stocks fell sharply as investors moved funds from stocks into Treasuries and mortgage-backed securities. Today stocks rallied after the European Union announced plans to make $1 trillion available to support Greece and other EU members. In other news, Fannie Mae asked the government for another $8.4 billion after reporting a $13.1 billion loss in the first quarter. Last week Freddie Mac requested $10.6 billion. The two mortgage giants have now received $140 billion in government assistance. No economic data will be released today.

Daily Market Update 5/7/10

Mortgage rates inched lower Friday in extremely volatile trading following stronger than expected jobs data and continued turmoil in stocks. The economy added 290,000 jobs in April, about 100,000 more than forecast. Meanwhile, the Unemployment Rate, which is calculated on a separate set of data, increased to 9.9% as the labor force grew by 805,000 workers in April. Average Hourly Earnings, a proxy for wage growth, increased at a modest 1.6% annual rate. In other news, global stock markets continued their slide on concerns over the European debt crisis. The Dow Jones Industrial Average has now given up all gains for 2010. Next week will be relatively quiet in terms of new economic data, with the exception of Friday's release of April Retail Sales figures and Industrial Production. The Treasury will hold large auctions of 3-, 10-, and 30-year securities beginning Tuesday.

Daily Market Update 5/6/10

Rates were little changed Thursday as weekly Jobless Claims came in close to forecast. First quarter Productivity rose at a 3.6% annual rate, better than expected. Stock prices continued to slump on concerns over Greece and other members of the European Union. The closely-watched Employment Report for April will be released tomorrow at 8:30 AM.

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Daily Market Update 5/5/10

Mortgage rates dipped Wednesday as concerns about riots in Greece and debt problems for other European countries caused a large decline in global stock markets. Investors shifted funds to safer assets, which helped mortgage-backed securities. Today's economic data had little impact on markets. March Pending Home Sales rose 5.3% from February, aided by homebuyer tax credits. The index is a leading indicator for the housing sector. Contracts had to be signed by April 30 to qualify for the credit, so May activity will be watched closely by analysts. The Institute for Supply Management services index was unchanged for April. A small increase had been expected. No other data will be released today.

Daily Market Update 5/3/10

Rates held steady Monday as mortgage-backed securities gave up gains that occurred late Friday. In economic news, March Personal Income increased 0.3%, matching forecast. Construction Spending rose 0.2%, better than expected. The Institute for Supply Management manufacturing index reading came in at 60.4, close to the consensus forecast. Readings above 50.0 indicate expansion. Stocks moved higher. No other data will be released today.