Daily Market Update 11/5/12

Mortgage rates inched lower Monday ahead of tomorrow's election.  Although the polls indicate a statistical dead heat, investors appear to be positioning themselves for an Obama victory and a divided Congress, an outcome which is seen as positive for bonds.  Stocks moved lower.  In economic news, the Institute for Supply Management services index fell to 54.2, a bit lower than expected.  No other key data will be released today.

Daily Market Update 11/2/12

Mortgage rates were little changed Friday following this morning's closely watched Employment Report.  After a brief sell off, mortgage-backed securities recovered from early losses.  The economy added 171,000 jobs in October, well above the consensus forecast of 125,000.  The Unemployment Rate increased to 7.9%, in line with expectations, due to an increase in the size of the labor force.  Average Hourly Earnings, a proxy for wage growth, was unchanged from September, which was weaker than expected.  Overall, the employment data was stronger than forecast.  Separately, Factory Orders rose 4.8% last month, slightly below expectations.  No other key data will be released today.  Next week's presidential election will likely overshadow all other economic news.

Daily Market Update 11/1/12

Rates inched higher Thursday as a rally in stocks pressured mortgage-backed securities.  This morning, payroll firm ADP projected an increase of 158,000 private sector jobs in October, slightly above forecast.  Third quarter Productivity rose 1.9%, close to expectations.  Weekly Jobless Claims fell to 363,000, below the consensus of 370,000.  The Institute for Supply Management manufacturing index came in at 51.7.  Readings above 50.0 indicate expansion in the manufacturing sector of the economy.  Consumer Confidence rose to 72.2, a bit less than expected.  Investors are now focusing on tomorrow's release of the October Employment Report, which comes out at 8:30 AM.  No other data will be released today.

Daily Market Update 10/31/12

Rates held steady Wednesday in quiet trading as U.S. stock and bond markets resumed trading.  In economic news, the Chicago Purchasing Managers Index rose to 49.9, short of forecast.  Readings below 50.0 indicate contraction in the manufacturing sector.  No other data will be released today.

Daily Market Update 10/30/12

Mortgage rates were unchanged Tuesday as U.S. financial markets remained closed for a second day due to Hurricane Sandy.  In economic news, the S&P/Case Shiller 20-city home price index rose 0.5% in August, in line with expectations, and were 2.0% higher than one year ago.  No other data will be released today.  Markets will resume operation on Wednesday.

Daily Market Update 10/29/12

Rates were little changed Monday in light trading as U.S. stock markets closed due to Hurricane Sandy.  Bond markets are scheduled to close at noon.  In economic news, the September Core PCE price index, the Fed's preferred measure of inflation, rose 0.1%, matching expectations.  Personal Income increased 0.4%, slightly below forecast.  No other key data will be released today.

Daily Market Update 10/26/12

Mortgage rates held steady Friday.  In economic news, preliminary third quarter Gross Domestic Product (GDP) figures showed economic growth of 2.0%, slightly above forecast, and up from an anemic 1.3% growth rate for the second quarter.  A 2% growth rate is generally consistent with a steady labor market, but insufficient for significant improvement.  Consumer Sentiment came in at 82.6, the highest level since September 2007, but below expectations.  Stocks were mixed.  Next week, the Core PCE price index, the Fed's preferred measure of inflation, will be released on Monday, the Institute for Supply Management manufacturing index will come out on Thursday, and the closely-watched Non-farm Payrolls and Employment Report for October will be released on Friday.  No other key data will be released today.