Mortgage Market Report

Market Outlook
Wednesday, August 26, 2009 7:05 AM
Price Trend: Positive
Price Volatility: High
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Current Conditions:
FNMA 4.5 100-12 (+2)
GNMA 4.5 100-17 (+2)
10yr Yield 3.431
Today’s Economic Data (PST)
Existing Home Sales 7:00
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Commentary:
Bonds are pretty flat this morning. Durable goods orders were released early and were close to
expectations. The data was encouraging for the manufacturing sector of the economy. New Home Sales
also showed signs of a stabilizing economy as sales jumped and inventories declined. Sales have risen for
4 consecutive months, but are still down 13.4% from one year ago.
Later this morning, the Treasury will be auctioning $39B of 5 year notes. It is expected to be relatively well
received and should have minimal impact on bond prices today. Anything could happen, though.
This Week’s Economic Calendar
Date/Time
(Central) Indicator Period Est. Actual Prior
8/25
8:00
S&P/CaseShiller Comp-20
(YoY) JUN -16.45% -15.4% -17.06%
8/25
9:00 Consumer Confidence AUG 47.6 54.1 46.6
8/26
6:00 MBA Mortgage Apps. 21-
Aug 7.5% 5.6%
8/26 Durable Goods Ex. Trans. JUL 0.9% 0.8% 1.1%
7:30
8/26
9:00 New Home Sales JUL 390K 433K 384K
8/26
9:00 New Home Sales (MoM) JUL 1.6% 9.6% 11.0%
8/27
7:30 GDP QoQ (Annualized) 2Q P -1.4% -1.0%
8/27
7:30 Personal Consumption 2Q -1.2% -1.2%
8/27
7:30 Initial Jobless Claims 22-
Aug 565K 576K
8/27
7:30 Continuing Jobless Claims 15-
Aug 6215K 6241K
8/28
7:30 Personal Income JUL 0.1% -1.3%
8/28
7:30 Personal Spending JUL 0.2% 0.4%
8/28
7:30 PCE Deflator (YoY) JUL -0.9% -0.4%
8/28
7:30 PCE Core (MoM) JUL 0.1% 0.2%
8/28
7:30 PCE Core (YoY) JUL 1.3% 1.5%
8/28
9:00
U of Mich. Consumer
Confidence
AUG
F 64.3 63.2