Daily Market Update

Mortgage rates held steady Tuesday as stocks declined. Several key economic reports are due out later in the week beginning with tomorrow's report on Retail Sales. The dollar continued to strengthen against the euro, helping push oil prices down to about $112 pb, a 23% reduction from its peak last month.

Daily Market Update 8/11/08

Rates were little changed Monday with no major economic reports being released today. The second half of the week is likely to be a bit more volatile, beginning with Wednesday's release of Retail Sales for July, the Consumer Price Index on Thursday, followed by Friday's report on Industrial Production. Stocks were mixed, the dollar strengthened against the euro.

Daily Market Update 8/7/08

Mortgage rates were little changed Thursday, trailing US Treasury markets for a second day following steep second quarter losses reported by Freddie Mac. Weekly Jobless Claims came in at 455,000, well above consensus, but Pending Home Sales for June rose unexpectedly by 5.3%. The European Central Bank (ECB) left rates unchanged this morning. Stocks were lower, the dollar higher. Rates are likely to remain volatile ahead of tomorrow's earnings report by Fannie Mae

Daily Market Update 8/6/08

Mortgage rates moved higher Wednesday after Freddie Mac released disappointing second quarter earnings and warned of more trouble ahead. Freddie reported a net quarterly loss of $821 million, three times analysts estimates, and announced plans to raise additional capital. They also doubled reserves for future loan losses to $2.8 billion, citing rising delinquency and foreclosure figures. Mortgage-backed securities sold off sharply on the news, performing much worse than US Treasuries. Stocks moved lower. Fannie Mae plans to release their quarterly earnings report Friday.

Daily Market Update 8/5/08

Mortgage rates were unchanged to slightly higher Tuesday morning ahead of this afternoon's Fed policy decision regarding short term interest rates. Although expected to hold rates steady, their "bias" is likely to change from neutral toward higher (rates) to combat inflation. There has been some dissent among FOMC members at recent meetings. It is possible that 3 members of the 12-member panel will vote to increase rates. If so, this would be the largest number of dissenting votes since 1992. Many analysts feel the recent decline in oil prices may have taken some pressure off the immediate need for higher interest rates. Stocks and the dollar moved higher as oil prices dropped below $120 pb.

Daily Market Update 8/4/08

Mortgage rates inched higher Monday ahead of Tuesday's Federal Open Market Committee (FOMC) meeting of the Federal Reserve. Few economists expect any change in short term interest rates as a result of the FOMC meeting, but investors will be closely watching the accompanying Fed statement for clues as to the future direction of rates. Reports released today on Factory Orders and Personal Income both came in above consensus. Oil continued its recent decline, falling to $121 per barrel from a high of $146 last month. Stock prices were modestly lower.

Daily Market Update 8/1/08

Mortgage rates were unchanged following the Employment Report showing the US economy lost 51,000 jobs in July, a little less than expected. The Unemployment Rate rose to 5.7%, the highest level since March 2004. The Federal Reserve is now almost certain to hold short term interest rates at their present level at the FOMC meeting next Tuesday due to concerns over rising unemployment. Stocks moved lower, while the dollar was higher against the euro.