Daily Market Update 5/9/08

Mortgage rates inched lower Friday as stocks tumbled on news of soaring oil prices, which hit a new record high of $126 per barrel. Oil prices have nearly doubled since last summer. The impact of higher oil prices on mortgage markets is yet to be determined. Inflationary pressures have been mounting as a result of higher energy costs in recent months. Higher inflation typically pushes interest rates higher, but the spike in prices at the pump is also likely to slow economic activity, which serves to hold inflation in check, creating a counter-balance. Major economic data to be released next week include Tuesday's Retail Sales report and Wednesday's Consumer Price Index, both seen as potential market movers. Industrial Production will come out Thursday, with Housing Starts and Consumer Sentiment rounding out the week on Friday.

Daily Market Update 5/8/08

Rates moved lower Thursday reflecting market improvement late Wednesday. Weekly jobless claims came in at 365,000, beating expectations. The Bank of England and the European Central Bank both held rates steady as expected, noting renewed inflationary pressures. No other economic data will be released today.

Daily Market Update 5/7/08

Rates were little changed this morning as first quarter Productivity rose a better than expected 2.2%. The National Association of Realtors reported a 1% decline in pending home sales for March from February, but a 20.1% decline from the same period last year. Oil prices continued rising above $122 a barrel and the Dollar strengthened. No other major economic reports are due out this week.

Daily Market Update 5/6/08

Mortgage rates were unchanged to slightly lower Tuesday as stock prices dropped in the wake of Fannie Mae's reported first quarter loss of $2.2 Billion and record high oil prices. Fannie announced plans to cut dividends and raise $6 Billion in new capital; their stock plunged 6% on the news. Meanwhile, Fed Chairman Ben Bernanke urged Congress to take action to reduce foreclosures in an effort to stabilize the real estate market.

Daily Market Update 5/5/08

Mortgage rates were little changed Monday following the ISM Services Index report showing surprising growth for April in the services sector of the economy. Modest upward pressure on rates resulted from a weaker Dollar and a rise in crude oil prices as Nigerian rebels attacked oil wells and pipelines over the weekend. The remainder of this week's economic calendar will be light with the exception of Wednesday's release of the April Productivity Report and Pending Home Sales Index.

Daily Market Update 5/2/08

Mortgage rates inched higher Friday as employment numbers beat expectations. The Report showed a net loss of 20,000 jobs in April, far better than the forecast loss of 75,000. The unemployment rate dipped to 5.0%. Rates improved slightly for the week following the Fed's 1/4% rate cut and their statement indicating concerns over rising inflation. Analysts are expecting the Fed to hold rates steady for the time being until they are able to fully assess the impact of previous cuts and the economic stimulus package checks currently being distributed.

Daily Market Update 5/1/08

Interest rates moved lower Thursday as investors continued analyzing yesterday's statement by the Fed. Most economists interpret the remarks to indicate a recognition of increasing inflationary pressures and a renewed emphasis on price stability. In other news, weekly jobless claims jumped to 380,000, well above forecast, and oil prices continued falling. Focus now turns to tomorrow's Employment Report for April. Weak data could provide room for further improvement in mortgage rates. The market will likely remain volatile until after the release, scheduled for 8:30 AM.