Daily Market Update 2/20/09

Rates inched lower Friday in a flight to quality move by investors. Traders sold stocks and purchased Treasuries and mortgage-backed securities (MBS) on growing global economic fears. The Consumer Price Index (CPI) rose 0.3% in January but was unchanged on an annual basis for the first time since 1955. The closely watched “core” rate increased 0.2%, a bit more than forecast. MBS markets showed little reaction to the CPI data. Several key economic reports are due out next week beginning Tuesday, including New- and Existing Home Sales, fourth quarter GDP, Durable Goods Orders, and the Chicago Purchasing Manager’s Index. I will be attending the National Association of Mortgage Brokers Legislative Conference in Washington, DC through Tuesday, but can be reached by email at: Daily market updates will resume Wednesday.

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