Daily Market Update 11/11/08

Interest rates were unchanged, as mortgage-backed securities and Treasury markets are closed today in observance of Veteran's Day. Stock prices fell on lower earnings expectations. Crude oil prices continued their descent, reaching $60 pb, a 59% decline since peaking in July. The dollar moved slightly higher against most foreign currencies.

Daily Market Update 11/10/08

Mortgage rates remained little changed Monday as mortgage-backed securities markets will close at 2:00 PM and not reopen until Wednesday in observation of Veteran's Day. World stock markets rose following China's announcement of a $600 billion economic stimulus plan. Fannie Mae posted a $29 billion loss last quarter and may need to begin tapping into government rescue funds by year end. This will be a relatively light week in terms of economic data, with the exception of Friday's report on Retail Sales.

Daily Market Update 11/7/08

Mortgage rates were little changed Friday following a larger than expected jump in the Unemployment Rate to 6.5%. The Employment Report for October showed a net loss of 240,000 jobs in the US last month. While such gloomy data would normally tend to push rates lower, traders are concerned about the increased likelihood of another government stimulus package and the associated costs. The government will need to issue even more debt, adding to the $1 trillion deficit projected for next year. Surprisingly, stocks moved modestly higher. No other data is scheduled for release today.

Daily Market Update 11/6/08

Mortgage rates returned to yesterday's levels after having risen in early trading. Third quarter Productivity increased at a 1.1% annual rate, in line with expectations. The European Central Bank (ECB) and Bank of England (BOE) cut rates today, the ECB by .5% and the BOE by an unusually large 1.5%. The dollar rose against the euro and pound. Oil prices sank to 20 month lows as retail gas prices fell below $2 per gallon in some areas. Stocks moved sharply lower. Traders will be closely watching tomorrow's Employment Report for October, scheduled for release at 8:30 et. No other economic data will be released today.

Daily Market Update 11/5/08

Mortgage rates improved late Tuesday and early Wednesday as uncertainty over the election ended. Conventional 30-year fixed rates have now fallen 3/4% since last Thursday. Investors have turned their attention to weakness in the economy. The Institute for Supply Management's Services Index showed service industries contracted more than expected in October as a result of lower consumer spending. Traders are anxiously awaiting Friday's release of the Employment Report for October. Analysts are projecting a net loss of 200,000 jobs for the month. Stocks and oil prices moved modestly lower.

Daily Market Update 11/4/08

Mortgage rates inched lower in light trading as investors await the outcome of today's elections. Stocks moved sharply higher. The euro gained against the dollar on a decline in money market rates, as frozen credit markets continue to show signs of thawing. Oil and other commodity prices surged on the weaker dollar.

Daily Market Update 11/3/08

Rates were little changed Monday ahead of tomorrow's election. In economic news, the Institute for Supply Management's Manufacturing Index fell to its lowest reading in 26 years last month as factory orders declined sharply in the wake of the deepening credit crisis. Stocks were mixed. Friday's Unemployment Report will be closely watched by investors, but the main focus of the week will be the results of the Presidential election and various Senate races. Although the market is anticipating an Obama victory, a 60 vote majority by Democrats in the Senate is less clear and would shift power dramatically to the left. The financial markets typically prefer divided government. Regardless of the outcome, many traders will be glad to see an end to the uncertainty that has resulted from the lead up to the election.