Daily Market Update 6/15/11

Rates held steady Wednesday as investors attempted to analyze newly released economic data.  This morning, The Consumer Price Index (CPI) rose 0.2%, above the consensus forecast of +0.1%.  The closely-watched "Core" rate, which excludes food and energy components, rose 0.3%, also above expectations.  May Industrial Production increased by 0.1%, close to forecast, but the Empire State index declined by 7.8%, far below an expected increase of 10%.  Stocks fell sharply.  The Mortgage Bankers Association weekly purchase activity index rose 4.5%, while the refinancing activity index increased by 16.5%.  Average reported 30-year fixed rates fell to 4.51%, not including fees.  No other key data will be released today.

Daily Market Update 6/14/11

Rates inched higher Tuesday as a rally in stocks hurt mortgage-backed securities.  Today's economic data contained few surprises.  The May Producer Price Index (PPI) rose 0.2% from April and was 7.3% higher than one year ago.  Core PPI, which excludes volatile food and energy components, rose at a 2.1% annual rate, in line with expectations.  May Retail Sales fell 0.2%, the first monthly decline since June 2010, but better than the consensus forecast of -0.7%.  China's central bank raised reserve requirements for the sixth time this year in an effort to fight inflation.  No other key data will be released today.

Daily Market Update 6/13/11

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

Daily Market Update 6/10/11

Mortgage rates were little changed Friday as mortgage-backed securities recovered from yesterday's late sell-off.  This morning, Federal Reserve Bank of New York President William Dudley suggested that economic growth will accelerate during the second half of 2011, but will seem "painfully slow" for many people.  May Import Prices rose 0.2%, the eighth consecutive monthly increase.  Stocks moved sharply lower.  Next week will be busy in terms of new economic data.  The Producer Price Index (PPI) and Retail Sales will be released on Tuesday, the Consumer Price Index (CPI) and Industrial Production will come out on Wednesday.  No other key data will be released today.

Daily Market Update 6/7/11

Rates moved slightly higher Tuesday as higher stock prices pressured mortgage-backed securities.  Results from today's 3-year Treasury auction will be released at 1:00 PM.

Daily Market Update 6/6/11

Mortgage rates inched higher Monday on growing concerns over the apparent lack of progress in negotiations to increase the federal debt ceiling.  Stocks and oil prices moved lower.  No key economic data will be released today.

Daily Market Update 6/3/11

Mortgage rates were little changed Friday as mortgage-backed securities recovered from Thursday's losses.  In economic news, the economy added 54,000 jobs in May, the lowest level in eight months, and far below forecast.  The Unemployment Rate rose to 9.1%.  Average Hourly Earnings, a proxy for wage growth, increased slightly more than expected.  Nearly all of the economic data in recent weeks has been weaker than forecast, raising concerns about the pace of growth, and helping to push mortgage rates lower.  Next week will be light in terms of new data.  Investors will likely focus on the results of 3-, 10-, and 30-year Treasury auctions over three days, beginning on Tuesday.