Daily Market Update 7/31/08

Interest rates moved lower Thursday on weaker than expected economic reports. Second quarter Gross Domestic Product (GDP) grew 1.9%, below forecast of 2.3%, and Weekly Jobless Claims spiked to 448,000, well above expectations of 395,000. Stocks and oil prices moved lower on the news. Much of the growth in GDP was attributed to the economic stimulus checks sent out last quarter. Congress is now debating additional stimulus measures, but the growing budget deficit may limit their options. Tomorrow's release of the Employment Report for July will be closely watched by traders and may be a significant market mover.

Daily Market Update 7/30/08

Rates were little changed Wednesday. President Bush signed the housing rescue bill into law this morning, easing some investors' concerns over the stability of the mortgage market. Stocks and the dollar were higher. No major economic reports are scheduled for release today.

Daily Market Update 7/29/08

Mortgage rates inched up Tuesday as an unexpected increase in Consumer Confidence and a drop in crude oil prices pushed stocks higher. Concerns grew over the newly released estimates for the 2009 Federal budget deficit, adding further pressure to interest rates. The market remains volatile, with wide daily swings in mortgage-backed securities prices. Several key economic reports are scheduled for release later this week, including the closely watched Employment Report due out Friday.

Daily Market Update 7/28/08

Mortgage rates improved Monday following the Senate's passage of the omnibus housing rescue package over the weekend. The bill has now moved on to President Bush for his signature. Investors' confidence in the stability of Fannie Mae and Freddie Mac had waned in recent weeks prior to the government's decision to stand behind the housing finance giants. Stocks and the dollar were lower.

Daily Market Update 7/25/08

Mortgage rates inched higher Friday as June Durable Goods Orders rose 0.8%, well above forecast. Adding further pressure to rates was a stronger than expected report on New Home Sales for June. The big news for the week was the likely passage of a comprehensive Housing Bill aimed at shoring up Fannie Mae and Freddie Mac, and providing up to $300 billion in new loans to troubled homeowners facing foreclosure. In addition, the bill provides funds for low income housing and a tax credit up to $7,500 for first-time home buyers. Next Friday's release of the Employment Report for July will be closely watched by investors and may be a significant market mover.

Daily Market Update 7/24/08

Rates improved Thursday following a spike in Weekly Jobless Claims and a larger than expected drop in Existing Home Sales. Home resales fell 2.6% in June. Nationally, median home prices dropped 6.1% compared with a year earlier. Yesterday the House passed a $300 billion housing rescue bill, as expected. The measure is likely to be approved by the Senate today or tomorrow before moving onto the White House, where President Bush has indicated his willingness to sign the bill. Stocks moved lower, oil prices held steady at about $124 a barrel, and the dollar was higher against the euro.

Daily Market Update 7/23/08

Rates were unchanged Wednesday with no major economic reports being released. President Bush dropped his threat to veto the sweeping housing bill being considered in Congress. The 700 page measure, offering up to $300 billion in assistance to troubled homeowners, will now likely be approved within days. The bill provides support to housing giants Fannie Mae and Freddie Mac, eliminates seller-funded down payment assistance programs, provides a limited tax credit to first time homebuyers, and increases minimim down payment requirements under FHA to 3.5% from 3%.