Daily Market Update 12/23/10

Mortgage rates were little changed Thursday in quiet trading. In economic news, Durable Goods Orders fell 1.3%, a bit more than expected. Excluding volatile transportation orders, however, the results exceeded expectations. November Personal Income rose 0.3%, beating forecast. The Core PCE price index, the Fed's preferred measure of inflation, rose at a tame 0.8% annual rate, matching October's record low level. Weekly Jobless Claims remained unchanged at 420,000. New Home Sales came in at 290,000, a bit weaker than expected. The Treasury will auction $99 billion of 2-, 5-, and 7-year notes next week. Mortgage-backed securities markets will close early today and remain closed until Monday. Merry Christmas!

Daily Market Update 12/22/10

Mortgage rates held steady Wednesday morning. In economic news, third quarter GDP was revised higher to +2.6% annual growth, slightly below forecast. Existing Home Sales rose 5.6%, in line with expectations. The Mortgage Bankers Association weekly purchase activity index fell by 3%, while the refinancing activity index plummeted by 25% on higher interest rates. Average reported 30-year fixed rates for the prior week rose to 4.85% not including fees. No other data will be released today.

Daily Market Update 12/21/10

Rates were little changed Tuesday. No key economic data will be released today, but it may be another volatile session due to extremely light trading volume. Stocks moved higher as tensions eased between North and South Korea.

Daily Market Update 12/20/10

Rates moved lower Monday. The final two weeks of December is often volatile as trading is light, therefore any movement in markets tends to be exaggerated. No economic data will be released today.

Daily Market Update 12/17/10

Mortgage rates inched lower Friday as mortgage-backed securities stabilized for the first time this week. As expected, Congress passed the new tax deal last night. The news had already been priced in, so there was little reaction by investors. Leading Indicators rose 1.1% in November, the most in 8 months, but slightly below expectations. Next week will be relatively quiet in terms of new economic data. Existing Home Sales figures will come out on Wednesday, New Home Sales on Thursday. Durable Goods Orders will also be released on Thursday. The market will be closed next Friday. No other data will be released today.

Daily Market Update 12/16/10

Mortgage rates moved higher Thursday reflecting Wednesday's late sell-off of mortgage-backed securities. 30-year fixed rates have now risen by about 1% over the past five weeks. Trading remains highly volatile. In economic news, November Housing Starts rose 4% to an annual rate of 555,000 units, beating forecast. Separately, Building Permits, a leading indicator, fell 4% to the lowest level since April 2009. Weekly Jobless Claims declined to 420,000, in line with expectations. The tax deal passed the Senate yesterday and a vote in the House is expected today. Investors are waiting for news from Europe about the aid package for countries with debt troubles. No other data will be released today.

Daily Market Update 12/15/10

Mortgage rates stabilized Wednesday morning after rising sharply on Tuesday. The market showed little reaction to today's economic data. The November Consumer Price Index (CPI) rose 0.1% from October, below the consensus forecast of +0.2%, and 1.1% higher than one year ago. Core CPI, which excludes volatile food and energy components, rose at a tame 0.8% annual rate. Industrial Production rose 0.4% in November, slightly above expectations. The Mortgage Bankers Association weekly purchase activity index fell by 5%, while the refinancing activity index decreased by 0.7%. Average reported 30-year fixed rates for the past week rose to 4.84% not including fees, the highest level in seven months. No other key economic data will be released today.