Daily Market Update 5/10/11

Mortgage rates inched lower Tuesday reflecting gains in mortgage-backed securities markets late Monday.  This morning, April Import Prices excluding oil rose 0.6% from March, a bit more than expected.  Results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/9/11

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

Daily Market Update 5/6/11

Mortgage rates were little changed Friday in volatile trading.  Mortgage-backed securities (MBS) gave up Thursday's late gains following a stronger than expected Employment Report.  The economy added 244,000 jobs in April, lifting stocks and hurting MBS markets.  The Unemployment Rate rose unexpectedly to 9.0% as previously discouraged job seekers re-entered the employment market.  Average Hourly Earnings, a proxy for wage growth, increased by 0.1% from March.  Key inflation data will be released next week, including the Producer Price Index on Thursday and the Consumer Price Index on Friday.  Retail Sales will also come out on Thursday.  No other data will be released today.

Daily Market Update 5/5/11

Mortgage rates inched lower Thursday following the release of weaker than expected jobs data.  Weekly Jobless Claims jumped to 474,000, far above the consensus forecast, but was partly due to one-time events that distorted the data.  Investors are more concerned that the four-week average shows a general weakening of the employment picture.  Productivity fell to 1.6%, beating expectations.  The European Central Bank (ECB) made no change in rates despite recent inflationary pressures.  The closely-watched Employment Report for April will be released tomorrow at 8:30 AM.  No other data will be released today.

Daily Market Update 5/4/11

Rates were mostly unchanged Wednesday in another day of quiet trading.  This morning, payroll firm ADP forecast an increase of 179,000 private sector jobs in April, below expectations.  The Institute for Supply Management services index fell to 52.8 in April from 57.3 in March.  Readings above 50.0 indicate expansion in the services sector of the economy.  The Mortgage Bankers Association weekly purchase activity index rose by 0.3%, while the refinancing activity index increased by 6%.  Average reported 30-year fixed rates last week fell to 4.76% not including fees.  No other key data will be released today.

Daily Market Update 5/3/11

Mortgage rates were little changed Tuesday in quiet trading.  March Factory Orders rose 3.0%, beating expectations.  No other data will be released today.

Daily Market Update 5/2/11

Mortgage rates were unchanged Monday as economic data was overshadowed by news of the death of Osama bin Laden.  Construction Spending rose a stronger than expected 1.4% in March.  An increase of 0.2% had been forecast.  The Institute for Supply Management manufacturing index fell to 60.4 in April, close to expectations.  No other key economic data will be released today.