Daily Market Update 8/31/12

Mortgage rates were little changed Friday following Fed Chairman Ben Bernanke’s speech in Jackson Hole, Wyoming.  While not announcing any new stimulus measures, Bernanke said the Fed “should not rule out the further use” of “nontraditional policies”, such as bond purchases by the Fed, to stimulate the economy if conditions warrant.  Stocks rallied shortly after the speech, while mortgage-backed securities recovered from earlier losses.  In economic news, the Chicago Purchasing Managers Index came in at 53.0, a bit below forecast.  Readings above 50.0 indicate expansion in manufacturing.  Consumer Sentiment rose unexpectedly to 74.3.  Factory Orders increased 2.8% last month, beating expectations.  The big news next week will be Friday’s Employment Report for August.  The financial markets will be closed on Monday in observance of Labor Day.  No other key data will be released today.

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