Daily Market Update 5/21/12

Rates held steady Monday in quiet trading.  This weekend, G8 leaders expressed support for Greece to remain in the EU, but did not agree on any policy measures to ease Greek financial troubles.  No economic data will be released today.

Daily Market Update 5/18/12

Mortgage rates remained near record low levels Friday.  No economic data will be released today.  Next week, Existing Home Sales will be released on Tuesday, New Home Sales on Wednesday, and Durable Goods Orders on Thursday.  Also next week, the Treasury will auction 2-, 5-, and 7-year notes over three days, beginning Tuesday.

Daily Market Update 5/17/12

Mortgage rates held steady Thursday in quiet trading.  This morning, weekly Jobless Claims came in at 370,000, above the consensus forecast of 365,000.  The Philly Fed index, a business outlook survey of manufacturers in Pennsylvania, New Jersey, and Delaware, fell to -5.8, much worse than expected.  Readings below zero indicate contraction in the manufacturing sector.  Leading Indicators fell 0.1%, below expectations.  Freddie Mac reported that average 30-year fixed rates fell to a new record low of 3.79% with 0.7 "points" last week.  No other key data will be released today.

Daily Market Update 5/16/12

Rates were little changed Wednesday on mixed economic data.  April Housing Starts rose 3% to an annual rate of 717,000 annual units, beating forecast.  Building Permits fell 7%, a bit more than expected.  Industrial Production increased 1.1%, above the consensus of +0.5%, but the March data was revised lower.  Stocks moved higher.  The Mortgage Bankers Association weekly purchase activity index declined by 2.4%, while the refinancing activity index jumped 9.2%.  Average reported 30-year fixed rates fell to 3.96%, not including fees.  Minutes from the April 25 Fed meeting will be released at 2:00 PM.

Daily Market Update 5/15/12

Mortgage rates held steady Tuesday as today's economic data provided few surprises.  The April Consumer Price Index (CPI) was unchanged from March and was 2.3% higher than one year ago.  The Core CPI, which excludes food and energy components, rose 0.2%, matching expectations.  April Retail Sales increased 0.1%, slightly less than expected.  The Empire State index rose to 17.1, exceeding forecast.  Greek political leaders failed to establish a coalition government, leading to new elections.  No other data will be released today.

Daily Market Update 5/14/12

Mortgage rates hit new lows this morning as increased uncertainty in Europe has hurt stock markets and boosted mortgage-backed securities.  Greek political leaders remain deeply divided and have been unable to form a coalition government.  There is little support for the bailout package, which requires severe austerity measures.  As a result, the likelihood that Greece will leave the European Union has been increasing.  No key economic data will be released today.

Daily Market Update

Rates held steady Friday as a key inflation reading came in below expectations.  The April Producer Price Index (PPI) declined 0.2% from March and was 1.9% higher than one year ago, the smallest annual increase since October 2009.  Lower oil prices were a major reason for the decline.  Core PPI, which excludes food and energy components, rose 0.2%, matching forecast.  In other news, Consumer Sentiment rose to 77.8, beating expectations.  Bank stocks declined sharply after JP Morgan Chase reported a trading loss of at least $2 billion.  Next week's key data includes Tuesday's Retail Sales figures and Consumer Price Index, and Industrial Production on Wednesday.  Also, Wednesday, minutes from last month's FOMC meeting of the Fed will be released.  No other data will be released today.