Daily Market Update 12/31/08

Mortgage rates moved lower Wednesday after having jumped briefly Tuesday. Mortgage-backed securities (MBS) markets are likely to remain highly volatile through the week due to extremely light trading. The MBS market closes today at 2:00 PM et. Late yesterday the Fed announced it will begin purchasing up to $500 billion MBS's from Fannie Mae and Freddie Mac in January, prompting a market rally. In economic news, Jobless Claims fell to 492,000 last week, far below expectations. Stocks and the dollar moved modestly higher.

Daily Market Update 12/29/08

Mortgage rates moved slightly lower Monday in extremely light trading. Stocks were mixed, the dollar lower, and oil prices higher. The only major economic data scheduled for release this week will be the Chicago Purchasing Managers Index on Tuesday and the Institute for Supply Management Index on Friday. Both reports measure manufacturing activity and are expected to show a continued slowdown from previous months. Normal trading volume will resume in mortgage-backed securities markets next week. We anticipate somewhat lower rates in January as lenders return to full staff levels and regain control over current application pipelines.

Daily Market Update 12/26/08

Mortgage rates inched lower Friday in extremely light trading. No economic data is scheduled for release today. Stock prices moved modestly higher. Mortgage-backed securities markets will close today at 2:00 PM et.

Daily Market Update 12/24/08

Rates were little changed Wednesday on light trading in a shortened session. Mortgage-backed securities markets close today at 1:00 PM et. Durable Goods Orders fell 1.0% in November, much less than expected. First-time Jobless Claims surged to 586,000 last week. Consumer Spending fell 0.6%, less than forecast. Mortgage rates are unlikely to show much movement prior to year-end, with little economic data being released and many traders having closed their books for 2008. Capacity concerns among lenders due to heavy refinancing activity and staff shortages resulting from the Holidays will keep rates artificially high until January. Rates should improve as lenders gain control of current pipelines.

Daily Market Update 12/23/08

Mortgage rates moved higher Tuesday following a brief sell-off of mortgage-backed securities late Monday in light trading. Final revisions to third quarter GDP showed the economy declined 0.5% for the period, as expected. New and Existing Homes Sales fell in November more than forecast. Stocks were modestly lower, while oil prices fell below $40 per barrel. Those looking to refinance at or below 5% with minimum closing costs may need to wait until after the first of the year. Lenders have priced artificially high due to under-capacity of the industry, a problem that has been exacerbated by staff shortages through the holidays.

Daily Market Update 12/22/08

Mortgage rates were little changed Monday, with no economic data scheduled for release today. Trading volume is typically very light in the final two weeks of December, as most investors have closed their books for the year. Final third quarter GDP figures will be released tomorrow, along with New and Existing Home Sales. Durable Goods Orders for November will be reported Wednesday. Refinance volume has slowed in recent days due to an increase in mortgage rates from 45-year lows reached last week.

Daily Market Update 12/19/08

Mortgage rates inched higher Friday as stock prices climbed on news of an agreed $13.4 billion government bailout of GM and Chrysler. Oil prices continued falling to about $35 per barrel, an astounding 78% decline from their July peak. The dollar was sharply lower against the euro. While mortgage rates remain near 45-year lows, they have crept higher over the past two days, largely on the surge of refinancing demand. Lenders' limited capacity to process the increased volume of business is affecting pricing. Borrowers who have not yet locked their interest rates may benefit by waiting a few more days for the industry to catch up on their pipelines.