Daily Market Update 8/22/12

Rates inched lower Wednesday, driven by news out of Europe.  Reports that German Chancellor Merkel faces strong political opposition to providing additional aid to Greece has increased uncertainty in the region.  In economic news, Existing Home Sales rose by 2.3% to 4.47 million annual units, a bit below forecast.  The Mortgage Bankers Association weekly purchase activity index increased 0.9%, while the refinancing activity index fell 9.0%.  Average reported 30-year fixed rates rose 10 basis points to 3.86% with .42 "points".  Detailed minutes from the August 1 FOMC meeting of the Fed will be released at 2:00 PM.