Daily Market Update 8/10/10

Rates were little changed Tuesday ahead of today's FOMC meeting of the Federal Reserve. In economic news, second quarter Productivity fell unexpectedly by 0.9%, the first drop since late 2008. Labor costs increased at a scant 0.2% annual rate. Stocks moved sharply lower. Results from today's 3-year Treasury auction will be released at 1:00 PM. The Fed announcement will come out at 2:15 PM. No rate changes are expected, but investors are divided about whether the Fed will reveal any significant changes in monetary policy, such as purchasing additional mortgage-backed securities.

Daily Market Update 8/9/10

Mortgage rates were unchanged in light trading Monday as investors await tomorrow's FOMC meeting. No economic data will be released today.

Daily Market Update 8/6/10

Rates inched lower Friday following disappointing employment data. The economy lost 131,000 jobs in July, more than expected. The Unemployment Rate, which is calculated differently than the Payrolls report, remained at 9.5%. Average Hourly Earnings, a proxy for wage growth, rose at a 1.8% annual rate. Yesterday, Freddie Mac reported average 30-year fixed rates for the previous week of 4.49% with 0.7 points, the lowest level on record. The big story next week will be Tuesday's Federal Open Market Committee (FOMC) meeting of the Federal Reserve. While no rate change is expected, the Fed has been considering other measures to stimulate the economy, including the resumption of its mortgage-backed securities purchase program. Investors will be watching closely. Separately, the Treasury will hold large auctions of 3-, 10-, and 30-year securities over three days beginning Tuesday. The Consumer Price Index and July Retail Sales will come out Friday. No other data will be released today.

Daily Market Update 8/5/10

Rates were little changed Thursday as mortgage-backed securities recovered from yesterday's losses on weak labor market data. Weekly Jobless Claims rose to 479,000, a 3-month high, but unusual seasonal adjustments related to the auto sector may have skewed the results. The European Central Bank (ECB) left rates unchanged, as expected. Investors will be closely watching tomorrow's Non-farm Payrolls report for July. No other data will be released today.

Daily Market Update 8/4/10

Rates held steady Wednesday as today's economic data came in close to expectations. This morning, the ADP estimate for Friday's Employment Report was for a net gain of 42,000 private sector jobs. The Institute for Supply Management services index rose to 54.3 from 53.8 last month. Readings above 50.0 indicate expansion in the services sector of the economy. The Mortgage Bankers Association weekly purchase activity index rose 2% as average reported 30-year fixed rates fell 9 basis points to 4.60 last week. Stocks moved modestly higher. No other data will be released today.

Daily Market Update 8/3/10

Rates were little changed Tuesday. In economic news, Pending Home Sales fell 2.6% in June, less than expected. Factory Orders declined for the second straight month by 1.2% against a consensus forecast of -0.5%. June Personal Income and Consumer Spending were flat. Today's Wall Street Journal reported that the Fed is considering a change in policy which would involve purchasing more mortgage-backed securities or Treasury bonds to push yields lower. No other data will be released today.

Daily Market Update 8/2/10

Mortgage rates rose slightly Monday as stocks rallied on stronger than expected economic news. The July ISM manufacturing index fell less than forecast to 55.5 from 56.2 in June. Readings above 50.0 indicate expansion in the manufacturing sector. Construction Spending rose 0.1%. A decrease of 1.0% had been expected. No other data will be released today.