Daily Market Update 2/29/12

Mortgage rates faced upward pressure Wednesday following comments by Fed Chairman Ben Bernanke.  In prepared testimony before the House Financial Services Committee, Bernanke said the recent rise in gasoline prices "is likely to push up inflation temporarily", although he indicated that monetary stimulus by the Fed remains warranted, and that inflation is likely to "remain subdued" in the longer term.  In economic news, fourth quarter GDP was revised higher to 3.0% from 2.8%.  The Chicago Purchasing Managers Index jumped to 64.0, beating forecast.  The Mortgage Bankers Association weekly purchase activity index rose 8.2%, while the refinancing activity index fell by 2.2%.  Average reported 30-year fixed rates declined to 4.07%, not including fees.  The Beige Book, a survey of economic activity by the Fed's 12 regional banks, will be released at 2:00 PM.

Daily Market Update 2/28/12

Mortgage rates held steady Tuesday following the release of mixed economic data.  January Durable Goods Orders tumbled 4.0%, below the consensus forecast for a decline of 1.0%, and the largest decrease since January 2009.  Consumer Confidence rose to 70.8, beating expectations.  The S&P/Case-Shiller 20-city home price index was 4.0% lower than one year ago.  No other key data will be released today.

Daily Market Update 2/27/12

Mortgage rates were little changed Monday in quiet trading.  In economic news, the National Association of Realtors reported Pending Home Sales increased 2.0% in January, beating forecast.  The data had little impact on mortgage-backed securities, as December sales figures were revised lower.  No other key data will be released today.

Daily Market Update 2/23/12

Mortgage rates were little changed Thursday.  Weekly Jobless Claims came in at 351,000, slightly below the consensus forecast of 355,000.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 2/22/12

Rates held steady Wednesday as mortgage-backed securities recovered from losses sustained late Tuesday.  In economic news, Existing Home Sales rose by 4.3% to 4.57 million annual units, below expectations.  The National Association of Realtors reported a 2% drop in the median home price in January to $154,700, the lowest level since November 2001.  The Mortgage Bankers Association weekly purchase activity index fell 2.9%, while the refinancing activity index declined by 4.8%.  Average reported 30-year fixed rates rose to 4.09%, not including fees.  The rare combination of low home prices and historically low interest rates have boosted home sales in recent months, particularly among investors and first-time buyers.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 2/21/12

Rates were little changed Tuesday in quiet trading.  This morning, European officials agreed to provide a $172 billion bailout package to Greece.  As a result, Greece will be able to avoid defaulting on debt maturing on March 20th.  Investors showed little reaction to the news.  Questions remain about whether Greek leaders will fully implement the deeply unpopular austerity measures called for in the deal.  No key economic data will be released today.

Daily Market Update 2/17/12

Mortgage rates inched higher Friday on renewed optimism that Greece will reach an agreement for a financial bailout package with the ECB.  In economic news, the January Consumer Price Index (CPI) rose 0.2% and was 2.9% higher than one year ago.  Core CPI, which excludes food and energy components, also rose 0.2%, above the consensus forecast of +0.1%.  Leading Indicators increased by 0.4%, close to expectations.  Mortgage-backed securities markets will be closed on Monday in observance of Presidents' Day.  No other key data will be released today.