Daily Market Update 9/30/10

Mortgage rates inched higher Thursday on stronger than expected economic data. Weekly Jobless Claims fell to 453,000, below the consensus forecast of 460,000. Final second quarter GDP figures were revised higher to +1.7% from +1.6%. The Chicago PMI national manufacturing index rose to 60.4, well above expectations. Freddie Mac reported average weekly 30-year fixed rates of 4.32% with 0.8 points last week, a new record. No other data will be released today.

Daily Market Update 9/29/10

Rates were little changed Wednesday with no key economic data scheduled for release. The Mortgage Bankers Association weekly purchase activity index rose by 2.4%, while the refinancing activity index fell by 1.6%, despite lower interest rates. The average reported 30-year fixed rate for the week ending 9/27 fell to 4.38%, excluding fees. Results of today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/28/10

Mortgage rates improved slightly Tuesday on weaker than expected economic data. Consumer Confidence fell to a reading of 48.5, the lowest level since February. Separately, the Case-Shiller 20-city seasonally adjusted home price index declined 0.1% in July, in line with expectations. The Wall Street Journal reported that Fed officials are considering a plan to make smaller-scale purchases of Treasury securities with an open-ended time frame. This approach would give the Fed more flexibility to make adjustments. It would also make Fed actions harder to predict, which could increase volatility in mortgage-backed securities markets. Stocks were little changed. Results of today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 9/24/10

Rates inched higher Friday as gains in stocks hurt mortgage-backed securities. This morning, August Durable Goods Orders fell 1.3%, which was close to forecast. Excluding the volatile transportation component, however, orders rose 2.0%, more than expected. New Home Sales were unchanged in August at an annualized rate of 288,000, close to expectations. Next week, two key manufacturing reports will be released. The Chicago Purchasing Managers Index will come out on Thursday and the Institute for Supply Management manufacturing index on Friday. The Treasury will hold large auctions of 2-, 5-, and 7-year notes over three days beginning Tuesday. No other data will be released today.

Daily Market Update 9/23/10

Mortgage rates were little changed Thursday on mixed economic news. Weekly Jobless Claims rose to 465,000, above the consensus forecast of 450,000. Existing Home Sales for August increased by 7.6% from July's record low, beating expectations, but remaining sluggish. Leading Indicators rose 0.3%. An increase of 0.1% had been expected. No other data will be released today.

Daily Market Update 9/22/10

Mortgage rates held steady Wednesday after moving lower late Tuesday. Yesterday, Fed officials said they are "prepared to provide additional accommodation if needed to support the economic recovery." Investors interpreted this to mean that additional bond purchases by the Fed could take place in the coming months if the recovery falters. This morning, the Federal Housing Finance Agency reported that home prices fell 0.5% in July from June, and 3.3% year-over-year. The Mortgage Bankers Association reported average 30-year fixed rates of 4.44% for the week ending 9/20. No key economic data will be released today.

Daily Market Update 9/21/10

Mortgage rates improved slightly Tuesday as members of the Federal Open Market Committee (FOMC) of the Fed met to discuss monetary policy. A statement will be issued following the meeting at around 2:15 PM et. While no rate changes are expected, investors are waiting to see what other steps, such as the purchase of Treasurys and mortgage-backed securities, the Fed might be considering to stimulate the economy. Recent comments indicate the Fed will only take further stimulative action if the economy deteriorates significantly. This morning, August Housing Starts rose 10.5%, beating expectations. No other data will be released today.