Daily Market Update 2/26/09

Mortgage rates moved higher Thursday, pressured by concerns over the supply of new debt to fund government rescue programs. The Obama Administration announced a projected $1.75 trillion budget deficit this year, 12% of GDP, the highest level since World War II. The plan included an additional $750 billion in financial industry aid. Treasury yields increased, stocks moved modestly higher. In economic news, January Durable Goods Orders fell 5.2%, more than doubling forecast. New Home Sales plummeted 10% to the lowest level since tracking began in 1963. One contributing factor may have been delayed purchases as buyers awaited details of the $8,000 first time home buyer tax credit included in the recent stimulus package. Fourth quarter GDP and the Chicago Purchasing Managers Index will be released tomorrow.

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