Daily Market Update 9/25/09

Mortgage rates inched lower Friday following the release of weaker than expected economic data. August Durable Goods Orders fell 2.4%, well below the consensus forecast of +0.5%. July New Home Sales rose 0.7% to 429,000, but fell short of expectations. The 30-year fixed rate is now at its lowest level since May. Federal Reserve Board of Governors member Kevin Warsh suggested in a Wall Street Journal Op Ed piece that the Fed may need to begin raising interest rates while unemployment is still elevated in order to avoid runaway inflation. Several key economic reports are due out next week, the most significant being Friday’s Non-farm Payrolls report for September.

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