Daily Market Update 5/28/13

Mortgage rates continued their upward trend Tuesday following the release of stronger than expected economic data.  This morning, the March S&P/Case-Shiller 20-city home price index rose 1.4% and was 10.9% higher than one year ago.  Consumer Confidence jumped to 76.2, well above forecast, to the highest level since February 2008.  Stocks surged, hurting mortgage-backed securities.  Conventional 30-year fixed rates have now risen by 1/2% in the past three weeks.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 5/24/13

Mortgage rates held steady Friday, having increased by about 1/4% for the week.  In economic news, Durable Goods Orders jumped 3.3% in April, easily beating forecast.  No other key data will be released today.  The mortgage-backed securities market will close at 2:00 PM in observance of Memorial Day.

Daily Market Update 5/23/13

Mortgage rates were little changed Thursday after moving higher on Wednesday.  Yesterday, in testimony before Congress, Fed Chairman Ben Bernanke said that it's possible the Fed could taper its purchases of mortgage-backed securities (MBS) at one of its "next few meetings" based on economic conditions.  According to Bernanke, the main requirement for reducing monetary stimulus is "sustainable" improvement in the labor market.  Many investors were surprised by this, and MBS markets sold off sharply.  Later, the Fed released minutes from the May 1 FOMC meeting which suggested wide disagreement among Committee members about the timing of Fed tapering of its purchases of Treasurys and MBS, also known as Quantitative Easing.  This morning mortgage rates hit their highest mark in over a year.

In economic news, weekly Jobless Claims fell to 340,000, a bit below forecast.  New Home Sales rose by 2.3% to 454,000 annual units, beating expectations.  Stocks moved lower.  Financial markets remain extremely volatile.  No other key data will be released today.

Daily Market Update 5/20/13

Mortgage rates were little changed Monday after reaching two-month highs on Friday.  No key economic data will be released today.

Daily Market Update 5/17/13

Rates faced upward pressure Friday following the release of stronger than expected economic data.  Leading Indicators rose 0.6%, beating the consensus of 0.3%.  Consumer Sentiment jumped to 83.7, far exceeding forecast, to the highest level since July 2007.  Stocks rallied, hurting mortgage-backed securities.  No other key data will be released today.

Daily Market Update 5/16/13

Mortgage rates ticked lower Thursday following the release of weaker than expected economic data.  This morning, weekly Jobless Claims jumped to 360,000, the highest level in six weeks, reversing a recent trend lower.  The April Consumer Price Index (CPI) fell 0.4%, below the consensus of -0.3%, and was a tame 1.1% higher than one year ago.  Core CPI, which excludes volatile food and energy components, increased 0.1%, a bit below expectations.  April Housing Starts declined 17% to 853,000 annual units, far below forecast, however Building Permits rose by 14%, much higher than expected.  The Philly Fed index, a survey of manufacturers in the region, came in at -5.2.  Readings below zero indicate contraction in the manufacturing sector.  No other key data will be released today.

Daily Market Update 5/15/13

Rates inched higher Wednesday following yesterday's sharp sell-off of mortgage-backed securities (MBS), although MBS recovered some of their losses this morning.  In economic news, April Industrial Production fell 0.5%, below the consensus forecast of -0.2%.  The Empire State Index declined by 1.4%.  An increase of 3.5% had been expected.  The Producer Price Index (PPI) fell 0.7% in April and was a tame 0.6% higher than one year ago.  Core PPI, which excludes volatile food and energy components, rose 0.1% and increased 1.7% year-over-year.  No other key data will be released today.