Daily Market Update 5/16/12

Rates were little changed Wednesday on mixed economic data.  April Housing Starts rose 3% to an annual rate of 717,000 annual units, beating forecast.  Building Permits fell 7%, a bit more than expected.  Industrial Production increased 1.1%, above the consensus of +0.5%, but the March data was revised lower.  Stocks moved higher.  The Mortgage Bankers Association weekly purchase activity index declined by 2.4%, while the refinancing activity index jumped 9.2%.  Average reported 30-year fixed rates fell to 3.96%, not including fees.  Minutes from the April 25 Fed meeting will be released at 2:00 PM.