The stock market surged again this morning, as investors absorbed more reports indicating an early stage of economic recovery may be in the works.
National sales of new homes rebounded 4.7 percent in February, according to the U.S. Commerce Department, after hitting a record low in January. Sales of new homes rose to a 337,000 in February.
Meanwhile, applications filed to refinance an existing mortgage rose an unadjusted 41.5 percent last week from the week before, after an announcement by the Federal Reserve Board caused fixed-rate mortgage rates to fall, according to the latest Mortgage Bankers Association (MBA) survey.
Mortgage applications filed to purchase a home were up a seasonally adjusted 4.2 percent from the week before, the MBA said.
"Mortgage rates fell sharply to low levels not seen in six decades following the Federal Reserve's announcement on the Treasury bond and mortgage-backed securities purchase programs. The drop offered a sizable refinance incentive for most homeowners sparking a pickup in refinance activity," said Orawin Velz, associate vice president of economic forecasting for the MBA.
The 30-year fixed-rate mortgage averaged 4.63 percent last week, down from 4.89 percent in the previous week, the MBA said. Fifteen-year fixed-rate mortgages averaged 4.48 percent, down from 4.52 percent.
The stock market also reacted to the news that the demand for machinery and other capital goods rose in February, driving orders for durable goods up 3.4 percent, the U.S. Commerce Department reported. The monthly rise was the first in six months.
The new data prompted the Dow Jones Industrial Average to surge by more than 177 points this morning. The Dow rose to 7,838, moving ever-closer to the 8,000 mark.
Local stocks in the BizTimes Stock Index shared that momentum, with advancers far outnumbering decliners. The largest local gainers this morning were Manpower Inc. (up $1.51 to $31.66), Badger Meter Inc. (up $1.31 to $33.71) and Snap-on Inc. (up $1.24 to $28.08). The largest local decliners this morning were Kohl's Corp. (down $1.18 to $41.60) and Joy Global Inc. (down 10 cents to $23.91).
Stocks surge again with improved economic data
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