Market Update

Market Commentary - Fri, Mar 13 - 10:25 AM ET

The New York Federal Reserve said yesterday that it purchased $27B in Mortgage Backed Securities from March 5 through March 11 bringing the total to near $217B since the program began in the beginning of 2009. The Fed aims to lower home loan rates or keep them near their current historic lows through the purchase program in an effort to revive the sagging housing market.

Good news slowly drips into this market as battered financial giant Citigroup said today that the bank will not need additional capital from the government. On Tuesday, it said the first 2 months of 2009 was profitable. Chairman Richard Parsons went on to say that it will stay in the hands of private investors.

The University of Michigan released it consumer sentiment reading today showing that the mood of the US consumer improved in March. The index came in at 56.6 for March when economists were calling for 53.3 and was slightly better than February's 55.0. However, the index of consumers' assessment of current economic conditions fell to 62.3 from 65.5 in February, hitting the lowest since November 2008.

The US trade deficit narrowed in January as imports dropped sharply to its lowest level in more than 6 years. The trade gap fell to $36.0B versus the $38.0B that was expected. The deficit has now dropped 6 months in a row.

The major Stock markets are trading higher again today trying to bring its winning streak to 4 days in a row. Stocks closed higher yesterday for a 3rd straight day, an achievement not seen since late January. The Dow Jones is now trading at 7,193 after hitting a multi-year intraday low of 6,469 on March 6.

Brought to you, courtesy of The Mortgage Market Guide.

The market commentary material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without error.