Mortgage Pros, Inc.

“Bond Market News and Perspective for Mortgage Professionals”
Wednesday, 12/02/09

MBA Weekly Mortgage Applications Survey: Market Composite Index increased 2.1%, Refinance Index increased 1.7%, and the Purchase Index increased 4.1% The refinance share of mortgage activity increased to 72.1% of total applications and the ARM share decreased to 4.8. The average 30-year rate decreased to 4.79%, and the average 15-year rate decreased to 4.27 % . This is the lowest 15-year fixed-rate ever recorded in the survey, with the previous low being 4.32 percent recorded the previous two weeks and in October 2009. The average one-year ARM rate decreased to 6.56
ADP Says U.S. Companies Cut Estimated 169,000 Jobs in November, the smallest drop since July 2008 and the eighth consecutive month during which the decline in employment was less than in the previous month. up from a revised 195,000 decline in October, and more than the forecast for a decline of 150,000 jobs.
Federal Reserve Beige Book to released at 2:00PM EST today.
Treasuries Little Changed After ADP Report; Friday’s Jobs Data Looms Treasuries were little changed after an industry report showed the U.S. lost an estimated 169,000 jobs in November, the smallest drop since July 2008. Estimates for the BLS Employment report on Friday are calling for a drop of 123,000 non-farm payrolls, the least since March 2008. Treasuries fell yesterday after government-related Dubai World said it began talks with banks to restructure $26 billion of debt. The holding company is seeking to delay payments on less than half its $59 billion of obligations. Its attempt to reach a so-called standstill agreement roiled markets last week, spurring demand for the relative safety of government debt.
FHA to Toughen Rules for Borrowers and propose new measures boost reserves. In Dec. 2 testimony before the House Financial Services Committee, HUD Secretary Shaun Donovan is expected to announce changes to the FHA mortgage insurance program to curtail defaults. They likely will include an increase in the minimum credit score for FHA loans from 500, a boost in the minimum down payment from 3.5% and a reduction in the maximum amount of seller concessions from 6% of the home’s value to 3%t. Experts say monthly insurance premiums charged to borrowers and the current upfront premium — currently 1.75% of the loan value — also could be hiked.
Bernanke Backed By Bank Panel Senators After `Far From Perfect’ First Term Ben S. Bernanke has the backing of a majority of U.S. senators on the Banking Committee for a second term as Federal Reserve chairman.
Regional Fed Directors Sought No Change in Rates in October, Minutes Show Regional Federal Reserve bank directors sought to leave borrowing costs unchanged in October, citing concerns about the “sustainability of any pickup in economic activity,” minutes of their meetings on the discount rate showed.
Philadelphia’s Plosser Says Benchmark Rate Should Rise With Market Rates Philadelphia Federal Reserve Bank President Charles Plosser said the central bank should increase its main interest rate in the future in line with market rates, which will rise with the strengthening of the U.S. economy.
‘Cyber Monday’ traffic surges 8%. Traffic at online retailers rose 8 percent on Monday, the last gasp of the post-Thanksgiving shopping bonanza, according to an industry organization. The increase in traffic was particularly strong from 5 p.m. to midnight, surging 19 percent in that period.

Economic Indicator News Release Calendar
DECEMBER 2009

MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY

01
Construction
(Oct) (10:00)
ISM Manufacturing
(Nov) (10:00)
Pending Home Sales Index
(Sept) (10:00)
Auto and Light Truck Sales
(Nov) (04:00) 02
ADP National Employment Report
(Nov) (08:15)
Metropolitan Area Employment and Unemployment
(Oct) (10:00)
Help Wanted Index
(Nov) (10:00)
Beige Book
(02:00) 03
Initial Claims (Weekly)
(08:30)
Productivity and Costs (R)
(3Q) (08:30)
ISM Services
(Nov) (10:00) 04
Employment Situation
(Nov) (08:30)
Mfr.Shipments, Inventories and Orders
(Oct) (10:00)

07
Consumer Credit
(Oct) (03:00) 08 09
Whole Trade
(Oct) (10:00) 10
Trade Balance
(Oct) (08:30)
Initial Claims (Weekly)
(08:30)
Treasury Statement
(Nov) (02:00) 11
Advance Retail Sales
(Nov) (08:30)
Imports/Exports
(Nov) (08:30)
Business Inventories
(Oct) (10:00)

14 15
Empire State Manufacturing Survey
(Dec) (08:30)
Producer Price Index
(Nov) (08:30)
Industrial Production and Capacity Utilization
(Nov) (09:15) 16
Real Earnings
(Nov) (08:30)
Consumer Price Index
(Nov) (08:30)
New Residential Construction
(Nov) (08:30)
Cleveland Fed Median CPI
(Nov) (11:00)
NJ Employment and Unemployment
(Nov) (04:30) 17
Initial Claims (Weekly)
(08:30)
Composite Indexes
(Nov) (10:00)
Philadelphia Fed Survey
(Dec) (10:00)
NY Employment and Unemployment
(Nov) (02:00) 18

21
Chicago Fed National Activity Index
(Nov) (10:00) 22
Corporate Profits (R)
(3Q) (08:30)
Gross Domestic Product (final)
(3Q) (08:30)
OFHEO Monthly House Price Index
(Oct) (10:00)
NAR Existing-Home Sales
(Nov) (10:00)
Richmond Fed Survey
(Dec) (10:00) 23
Personal Income
(Nov) (08:30)
Revised Building Permits
(Nov) (08:30)
New Residential Sales
(Nov) (10:00)
State and Local Building Permits
(Nov) (10:00) 24
Advance Durable Goods
(Nov) (08:30)
Initial Claims (Weekly)
(08:30)

EARLY CLOSE AT 2PM EST 25
Christmas

BOND MKT CLOSED

28
Dallas Fed Manufacturing Survey
(Dec) (11:30)
Chicago Fed Midwest Mfg. Index
(Nov) (12:00) 29
S&P/Case-Shiller Home Price Indices
(Oct) (09:00)
Consumer Confidence
(Dec) (10:00) 30
Chicago Purchasing Managers Index
(Dec) (09:45) 31

EARLY CLOSE
AT 2pm

This entry was posted on Wednesday, December 2nd, 2009 at 12:00 pm and is filed under HEADLINE NEWS, THE FED. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.