Archive for July, 2008

New 2008 Highs for Mortgage Rates

Wednesday, July 30th, 2008

Fixed-rate mortgages (FRMs) hit the highest levels of 2008 during the week ended July 24 according to Freddie Mac's Primary Mortgage Market Survey. "Market concerns about rising inflation and the greater probability that the Federal Reserve (Fed) will raise short-term rates this year all combined to push mortgage rates higher this ...

The Home Equity ATM Machine Slows in First Half of 2008

Wednesday, July 30th, 2008

Whatever else is going on in the housing market, it appears that Americans are no longer using their homes as gigantic credit cards to finance new cars, tuition, and vacations. Freddie Mac's report on cash-out refinancing for the first half of 2008 showed that the number of homeowners taking that option ...

SEC Extends Rule Limiting Short Selling Until August 12

Wednesday, July 30th, 2008

On Tuesday evening, the Securities and Exchange Commission extended its emergency rule limiting short selling of Fannie Mae, Freddie Mac and 17 brokerage firms to Aug. 12. "The commission will continue exploring other remedies for the broader marketplace to further protect inventors from distort and short artists," said SEC Chairman ...

Economist Calls U.S. ADP Employment Report “Grossly Over-Optimistic”

Wednesday, July 30th, 2008

Following the release of the ADP private employment report on Wednesday, which posted a gain of 9k jobs in July, economists dismissed the figures as overly optimistic and predicted they won't be reflected in the BLS nonfarm payrolls survey on Friday. Speaking on CNBC, Joel Prakken, chairman of Macroeconomic Advisors and ...

Fed to Conduct Liquidity Operations Through January 2009, Introduces 84-Day TAF

Wednesday, July 30th, 2008

In addition to the $75 billion 28-day Term Auction Facility (TAF), the Fed will also be conducting a $25 billion 84-day TAF to address the ongoing "fragility" of the financial system. The Fed also said it would be extending its extraordinary lending to late January 2009. "In light of continued ...

MBA Mortgage Applications Move Down in Week Ending July 25

Wednesday, July 30th, 2008

Weekly mortgage applications declined in the week ending July 25, according to data released from the Mortgage Bankers' Association (MBA) on Wednesday, which reported a 14.1% week-over-week fall in applications. In the previous week, applications fell 6.2%. Read More Now

Wednesday’s Events: ADP Employment, Cdn Five-Year Bond Auction, DOE Oil

Wednesday, July 30th, 2008

The ADP employment report will be the most closely looked at economic event of the day ahead of Friday's U.S. nonfarm payrolls. In Canada, markets will receive industrial product and raw material prices for June followed by an auction of five-year government bonds. Meanwhile, energy traders will be looking at ...

Are Rumors Rather than Reality Feeding Market Behavior?

Tuesday, July 29th, 2008

Is it possible that some of the collapses and near misses in the financial markets over the last six months will ultimately be tied to a few sick and/or greedy people who have used rumors and innuendo to manipulate the market? Government regulators are looking at such a scenario starting ...

U.S. Consumer Confidence Improves to 51.9 in July

Tuesday, July 29th, 2008

The Conference Board's consumer confidence index for July improved to 51.9 in Tuesday's report, against expectations of a slight decline to 50.0. Some economists were expecting such an improvement following the upward revisions in the Reuters/U of Michigan sentiment index last week, which bumped up to 61.2 from the preliminary ...

Tuesday’s Events: U.S. Consumer Confidence, S&P/CS House Prices

Tuesday, July 29th, 2008

Consumer confidence for July and the S&P/Case- Shiller's home price index for May will be the main focus of Tuesday's economic events with no major macroeconomic releases expected for Canada. Across the Atlantic, market participants will also be looking out for preliminary results of German CPI for July. Read More ...