Daily Market Update 10/9/08

Mortgage rates moved higher Thursday as global stock markets recovered some of their recent losses. The flight to quality trade has been reversing, meaning that investors are leaving the relatively safe haven of bond markets. In addition, the added supply of debt needed to fund the rescue plan is weighing on bonds and mortgage-backed securities. Jobless Claims came in close to expectations. No more economic data will be released today.

Daily Market Update 10/8/08

Rates moved higher Wednesday in what has been an extremely volatile day for financial markets. The Federal Reserve, in a coordinated move with other central banks around the world, cut the Fed Funds Rate from 2.00% to 1.50%. Investors' uncertainty about the economy may result in greater volatility than usual in the coming weeks.

Daily Market Update 10/7/08

Mortgage rates were little changed Tuesday ahead of Fed Chairman Ben Bernanke's speech at the National Association of Business Economics annual meeting. His comments are expected to focus on the current global financial crisis and will be closely watched by investors. The Fed announced a plan to purchase US Commercial Paper in an effort to ease liquidity for businesses. The minutes from the September 16 meeting of the Federal Open Market Committee (FOMC) will be released at 2:00 PM, although much has changed in recent weeks, so the information may be of little value. The dollar moved lower on expectations of an imminent rate cut by the Fed. Stocks were mixed.

Daily Market Update 10/6/08

Interest rates benefited Monday from another sharp sell off in stocks. The Dow Jones Industrial Average dropped below 10,000 for the first time in over four years. The euro fell sharply against the dollar on growing concerns over the financial stability of European banks. Oil plummeted to $90 pb, down 39% from its peak in July. Credit markets remain tight in spite of last week's passage of the $700 billion rescue package. No economic data will be released today.

Daily Market Update 10/3/08

Mortgage rates were little changed Friday as the House began debating the $700 billion rescue package. Stocks rose modestly on hopes an agreement would be reached later today. Non-Farm Payrolls fell by 159,000 in September, much larger than expected. The Unemployment Rate held steady at 6.1%. Traders' main focus remains on the fate of the government rescue plan. Markets are likely to remain extremely volatile while negotiations on the rescue package continue.

Daily Market Update 10/2/08

Rates inched lower Thursday as stocks fell sharply on weak economic data. Jobless Claims rose to 497,000, the highest level since September 2001, while Factory Orders declined 4.0% last month, worse than expected. Last night the Senate overwhelmingly approved the $700 billion rescue package, although its fate remains uncertain in the House. Tomorrow will likely be an extremely volatile day for the markets, as the closely-watched Employment Report will be released at 8:30 AM and the House takes up the Senate version of the government rescue plan. In other news, the European Central Bank (ECB) held rates steady, while the Federal Reserve is said to be considering further rate cuts to help stimulate the US economy.

Daily Market Update 10/1/08

Rates eased Wednesday morning after surging late Tuesday, as the pattern of market volatility continues. Stocks fell sharply on lower corporate earnings estimates and ISM Index data indicating the manufacturing sector of the economy contracted more than expected in September. Traders have increased their bets on the likelihood of a looming recession in recent days. The Senate is scheduled to vote later today on a revised government rescue package that includes tax relief and a temporary increase in FDIC coverage on bank deposits. The measure is expected to pass the Senate and move back to the House for reconsideration.