Daily Market Update 5/9/12

Mortgage rates were little changed Wednesday as investors focused on news from Europe.  Concerns over the stability of the banking sector have resulted in higher bond yields in larger countries such as Spain and Italy, making it more difficult to achieve economic growth.  Political opposition to austerity measures is strong, and there is growing disagreement about the best approach to solve Europe's financial problems.  Global stock markets moved lower.  On a more positive note, Fannie Mae announced first quarter net profit of $2.7 billion and said it will not be asking for additional bailout funds from the Treasury at this time.   The Mortgage Bankers Association weekly purchase activity index rose 3.4%, while the refinancing activity index increased by 1.3%.   Average reported 30-year fixed rates fell to 4.01%, not including fees.  Results from today's 10-year Treasury auction will be released at 1:00 PM.