Daily Market Update 3/28/13

Mortgage rates held steady in quiet trading Thursday following the release of weaker than expected economic data.  This morning, weekly Jobless Claims rose to 357,000, above the consensus forecast of 340,000.  Fourth quarter GDP was revised higher to 0.4%, just short of expectations.  The Chicago Purchasing Managers Index fell to 52.4.  Readings above 50.0 indicate expansion in Midwest manufacturing.  Results from today's 7-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/27/13

Rates inched lower Wednesday as stocks fell following weaker than expected home sales and renewed concerns about Italy.  The vote in recent Italian elections was split between three parties, and they have been unable to form a coalition government, making recovery from its debt problems even more challenging.  In the U.S., the National Association of Realtors reported that the Pending Home Sales index fell 0.4%, far below expectations.  Lack of adequate inventory was cited as a key reason for the decline.  Results from today's 5-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/26/13

Mortgage rates held steady Tuesday following the release of mixed economic data.  February Durable Goods Orders jumped 5.7%, beating forecast, but excluding volatile aircraft orders the results fell short of expectations.  The January S&P/Case-Shiller 20-city home price index rose 8.1% from one year ago, the largest annual increase since 2006.  Consumer Confidence slipped to 59.7.  A reading of 68.0 had been expected.  New Home Sales fell to 411,000 annual units, slightly below the consensus forecast.  Stocks moved higher.  Results from today's 2-year Treasury auction will be released at 1:00 PM.

Daily Market Update 3/25/13

Rates were little changed Monday as mortgage-backed securities recovered from early losses.  Stocks initially rallied on news that a bank bailout deal had been reached between Cypress and the ECB, but optimism quickly faded as details of the plan emerged.  Deposits up to 100,000 euros will be spared any tax assessment, while deposits above that amount will be taxed up to 40%.  Many wealthy Russian depositors will be affected.  Political uncertainty in Italy also contributed to investor sentiment as stocks turned sharply lower.  No key economic data will be released today.

Daily Market Update 3/22/13

Rates were little changed Friday as investors remained focused on events in Europe.  This morning the ECB warned that it will cut off emergency funding for banks in Cypress on Monday if no deal is reached.  It now appears possible that Cyprus will leave the European Union.  Next week's key economic data includes the release of Durable Goods Orders on Tuesday, final fourth quarter GDP figures on Thursday, and Core PCE, the Fed's preferred measure of inflation, on Friday.  No key data will be released today.

Daily Market Update 3/21/13

Mortgage rates held steady Thursday after moving higher late Wednesday.  Yesterday the Fed indicated it will continue purchasing $85 billion worth of Treasurys and mortgage-backed securities each month until the labor market improves significantly.  This morning, weekly Jobless Claims rose to 336,000, which was lower than expected.  Existing Home Sales increased to 4.98 million annual units, slightly below forecast.  The Federal Housing Finance Agency (FHFA) said home prices rose 6.5% from January 2012 to January 2013, the largest annual increase since 2006.  Leading Indicators increased 0.5%, in line with expectations.  In Europe, the European Central Bank's Governing Council said Cypress has until Monday to agree to an acceptable alternative plan in order to continue receiving emergency bailout funds and avoid bankruptcy.  Global financial markets remained volatile.  No other key data will be released today.

Daily Market Update 3/19/13

Mortgage rates were little changed Tuesday as the Fed began its two-day Federal Open Market Committee meeting to discuss monetary policy.  An announcement by the Fed will be made tomorrow afternoon.  In economic news, February Housing Starts rose by 1.0% to an annual rate of 917,000 units, beating expectations.  Building Permits jumped 5% to the highest level since June 2008.  A vote on the proposal to tax bank deposits in Cypress as a condition for a bank bailout by the EU is scheduled for later today, although it may be postponed due to public outcry.  No other key economic data will be released today.