Daily Market Update 3/22/11

Rates were little changed Tuesday in quiet trading. Stocks were mixed. No key economic data will be released today.

Daily Market Update 3/21/11

Mortgage rates moved higher Monday on supply concerns after the Treasury announced that it will begin selling its remaining $142 billion in agency-guaranteed mortgage-backed securities holdings. Beginning this month, the Treasury plans to sell up to $10 billion per month to wind down the emergency program put in place during the financial crisis. In economic news, the National Association of Realtors reported Existing Home Sales fell by 9.6% in February, much more than expected. The median sales price declined by 5.2% year-over-year to $156,100. No other key data will be released today.

Daily Market Update 3/18/11

Mortgage rates held steady Friday in the absence of any key economic data. Last night, the United Nations authorized the use of force against Libyan leader Gadhafi. As a result, Libya announced an end to all military actions, pushing stocks higher and pressuring mortgage-backed securities. Separately, the G7 nations intervened in currency markets to drive down the value of the yen to help boost the Japanese economy. Next week, Existing Home Sales will be released on Monday, New Home Sales on Wednesday, and Durable Goods Orders on Thursday.

Daily Market Update 3/17/11

Rates inched higher Thursday as a stock market rally pushed mortgage-backed securities lower. In economic news, weekly Jobless Claims decreased to 385,000. The February Consumer Price Index (CPI) rose 0.5%, slightly above forecast. Core CPI, which excludes food and energy, increased 0.2%, and was 1.1% higher than one year ago. Industrial Production fell by 0.1%. An increase of 0.6% had been expected. Leading Indicators rose 0.8%, close to expectations. No other key data will be released today.

Daily Market Update 3/16/11

Rates were little changed Wednesday as mortgage-backed securities held onto yesterday's gains. In economic news, February Housing Starts declined 23% from January to the lowest level in nearly two years. Building Permits, a leading indicator, fell 8% to a record low annual rate of 517,000 units. The Producer Price Index (PPI) jumped 1.6% in February, far above the consensus forecast. Core PPI, which excludes volatile food and energy components, rose a tame 0.2% from January and was 1.8% higher than one year ago. The Mortgage Bankers Association weekly purchase activity index declined by 4%, while the refinancing activity index rose by 1%. Average reported 30-year fixed rates fell to 4.79%, not including fees. No other data will be released today.

Daily Market Update 3/11/11

Mortgage rates were little changed Friday in volatile trading. Financial markets experienced wide swings as investors attempted to assess the impact of today's severe earthquake in Japan. In economic news, February Retail Sales rose by 1.0%, matching forecast. Consumer Sentiment fell to 68.2 from the previous reading of 77.5. Rising gas prices in recent weeks are being blamed for the sharp decline. Next week will be busy in terms of new data. The Federal Open Market Committee (FOMC) of the Fed meets on Tuesday, the Producer Price Index will be released on Wednesday, and the Consumer Price Index and Industrial Production will come out on Thursday. The Daily Market Update will be unavailable until Wednesday. I will be in Washington, DC on Monday and Tuesday meeting with our Congressional delegation regarding the Fed's loan originator compensation rule scheduled to take effect April 1. If you believe that increased competition drives down costs, improves service levels, and increases choices for consumers, join the fight. Please visit www.namb.org or www.naihp.org to learn more about what you can do to prevent the nation's largest financial institutions (those too big to fail) from taking over the mortgage industry.

Daily Market Update 3/10/11

Rates inched lower Thursday on weaker than expected economic data. Weekly Jobless Claims rose to 397,000, above the consensus forecast of 380,000. The Trade Deficit increased to $46.3 billion, well above expectations. Moody's downgraded Spain's sovereign debt rating, pushing global stock markets sharply lower. Results from today's 30-year Treasury auction will be released at 1:00 PM.