Posts Tagged ‘US’

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 25, 2010. The Mortgage Bankers Association application survey covers over 50% of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. In a low mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out a lower monthly payment which can increase disposable income and consumer spending (or give consumers a chance to pay down other debts like credit cards). A falling trend of purchase applications indicates a decline in home buying interest, a negative for the housing industry and the economy as a whole. Excerpts...(read more)

Ahead of what should be a busy day in the markets, equity futures are looking to build upon the broad-based surge on Thursday. Ninety minutes before the opening bell, Dow futures up 15 points to 10,161 and S&P 500 futures are up 1.25 points to 1,085.00. Yesterday, the Dow jumped 2.76% and the S&P jumped leapt 2.95%. The 2-year Treasury note yield is 1.6 basis points lower at 0.778% and the benchmark 10-year Treasury note is 2.6 basis points lower at 3.299%. The NYMEX crude contract is off $0.31 to $75.17, and COMEX Gold is up $2.20 at $1,223.0. The US dollar index is down nine basis points to 87.07, after the surge in US equities yesterday prompted global gains extending to foreign stocks and currencies. The Day Ahead: 8:20 ― Charles Plosser , president of the Philadelphia Fed, discusses...(read more)

U.S. mortgage rates continued their downward trek in the past week, edging closer to a record low set in early December, according to a survey released on Thursday by Freddie Mac, the second-largest U.S. mortgage finance company.

Lower interest rates on mortgages should buoy home loan refinancing activity, putting more cash into consumers’ hands to funnel into the U.S. economy. It also makes homes more affordable during the most important period, the spring selling season.

Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 4.78 percent for the week ended May 27, down from the previous week’s 4.84 percent, according to the survey.

That is below the year-ago level of 4.91 percent and also the lowest the rate has been since the week ended Dec. 3, 2009 when it hit a record low of 4.71 percent. Freddie Mac started the survey in 1971.

“These low rates will help to elevate home-buyer affordability and soften the effects of the sunset of the home-buyer tax credit,” Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities.

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Calculators and Advice from Bankrate.com:

Compare Mortgage Rates Nationwide

Struggling to Save Your Home? Get Help Here

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URL: http://www.cnbc.com/id/37376985/

Volatility in the US stock market hit a three-month high yesterday as the benchmark S&P 500 has shed 3% in the past two trading days. Equity futures have been drifting overnight and suggest a slight recovery this morning. Two hours before the opening bell, the Dow looks to open 20 points higher at 10,854 while S&P 500 futures are up 2.75 points to 1,166.75. The 2 year Treasury note is unchanged yielding 0.865% and the benchmark 10 year note is up 2.7bps yielding 3.573%. Light crude oil is off 0.20% to $79.81 per barrel, while gold is up 0.11% to $1,175.90. Overseas, Greek headlines and the threat of contagion continue to dominate headlines. Japan’s Nikkei index, opening markets after some local holidays, sunk 3.3% to a two-month low today. A flight to quality has helped the US...(read more)

US equities look to open lower as bad news from Europe continues to dominate the headlines. The latest is European Central Bank council member Axel Weber warning that Greek insolvency could have “a Lehman-like effect.” He called the loans mechanism from the European Union “the best way” to prevent the crisis from spreading. “There is a threat of grave contagion effects for other member states in the monetary union and increasing negative feedback loop effects on capital markets,” Weber said, according to Bloomberg News. “All in all, Germany’s contribution to the aid package for Greece is justifiable.” Compared to the sell-off in Europe, today’s downward open in US equities looks minor, yet the benchmark S&P 500 already lost 2.4...(read more)

Equity futures are modestly higher this morning as investors anticipate the latest developments from Greece as well as three key domestic data releases. “Optimism that a new bailout for Greece is near is providing a modest boost to equity markets and weighing on the US$ index,” said economists from BMO Capital Markets. “The package is rumored to include a further €24 billion in austerity measures (about 10% of Greek GDP).” Key Events Today: 8:30 ― The National Bureau of Economic Research refused to say recently whether the economy had exited the recession, but it should be broadly agreed upon once GDP advances for the third straight quarter, as it is expected to do in this report. First-quarter growth is anticipated to rise 3.4% following the 5.6% gain in the fourth...(read more)

As European equities climb higher on Friday, the US stock market is looking to open on a positive note following a late rally yesterday. Dow futures are up 27 points to 11,095 and S&P 500 futures are up 4.25 points to 1,1206. The 2 year Treasury note is -0-01 at 99-29 yielding 1.049% and the 10 year Treasury note is -0-09 at 98-17 yielding 3.803%. The FN 4.5 mortgage-backed security coupon is -0-06 at 100-01. Commodity prices are slightly weaker with WTI crude oil down 15 cents to $83.55 per barrel, while Spot Gold is trading $1.60 lower at $1,139.90. Euro stocks were raised after Greek Minister George Papandreou officially asked for the €45 billion rescue package administered by the IMF and European Union to be activated . Moreover, the German Ifo index of business condition jumped...(read more)

Stocks fell across Europe and Asia fell Thursday after Greece revealed that its 2009 deficit was a worse than anticipated 13.6% of GDP, against expectations of 12.7%. US stocks are following suit after a mixed session yesterday, but plenty of fresh data in the morning could change the markets direction. One hour before the opening bell, Dow futures are down 30 points to 11,029 and S&P 500 futures are down 5.00 points to 1,195.25. The 2yr Treasury note is flat yielding 0.996% and the 10 year Treasury note is +0-01 at 99-02 yielding 3.741%. Commodity prices are also weaker with WTI crude oil down 64 cents to $83.04 per barrel, while Spot Gold is trading $4.32 lower at $1,142.43. Maintaining its flight-to-quality characteristics, the US dollar has strengthened, particularly against the euro...(read more)

With little economic data released until Thursday this week, investor attention should remain focused on first-quarter earnings releases, plus continued speculation on the Securities and Exchange Commission’s lawsuit against Goldman Sachs. Before the Friday announcement that the SEC was charging Goldman with fraud , all three indexes in the US were at 52-week highs. This morning, ahead of Q1 earnings from Citigroup, Halliburton and IBM, stock futures are sharply lower. Dow Futures are down 47 points to 10,937 and S&P 500 futures are off 5.75 points to 1,184.50. The 2 year Treasury note is -0-00 at 100-02 yielding 0.963% and the 10 year Treasury note is -0-02 at 98-23 yielding 3.78%. Commodities are also weaker with WTI crude oil trading $2.35 lower at $80.89 per barrel and Spot Gold...(read more)

US equities have been rising for the past six trading days, but even though first-quarter earnings continue to roll in with positive results, the futures market is looking soft as the week comes to an end. “Earnings at GE, the bellwether of the U.S. economy, beat expectations in the latest quarter,” noted economists from BMO. “BoA also exceeded estimates, hitting the high bar set earlier this week by JPM and Wells Fargo.” Even so, Dow futures are down 15 points to 11,081 and S&P 500 futures are off 2.25 points to 1,206.25. The 2 year Treasury note is +0-01 at 100-00 yielding 0.996% and the 10 year Treasury note is +0-05 at 98-14 yielding 3.817%. Meantime, NYMEX crude oil is down 77 cents to $84.74, and Spot Gold is trading $3.85 lower at $1,155.40. Key data on housing...(read more)