Daily Market Update 5/2/13

Mortgage rates were little changed Thursday in spite of better than expected economic news.  Weekly Jobless Claims fell to 324,000, the lowest level since January 2008.  The March Trade Deficit declined to $38.8 billion, far below the consensus forecast of $43 billion.  Fourth quarter Productivity came in at 0.7%, below expectations.  Yesterday’s Fed statement was uneventful.  The Fed will continue purchases of $85 billion per month of Treasurys and mortgage-backed securities until the labor market improves “substantially”.  The only change from its last statement was the addition that the Fed is “prepared to increase or reduce” the pace of asset purchases based on changes in its outlook for the labor market and inflation.  No other key data will be released today.

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