Daily Market Update 9/28/11

Mortgage rates have risen for the past three days after reaching historic lows last week.  Strength in stock markets resulting from renewed optimism over Europe has hurt bonds and mortgage-backed securities.  This morning, August Durable Goods Orders declined 0.1%, which was slightly below the consensus forecast.  The Mortgage Bankers Association weekly purchase activity index rose 2.6%, while the refinancing activity index increased by 11.2%.  Average reported 30-year fixed rates fell to 4.25%, not including fees.  Results from today's 5-year Treasury auction will be released at 1:00 PM.