Positive Reports
1/29/10 Mortgage Backed Securities are minus 12bp this morning. GDP, PMI, Sentiment, Earnings and a confiramtion were all positives for the markets. I would have thought that the stock markets would have reponded a little more favorable to this news. I think investors are finally asking the sustainability question we have talked about. I am starting to hear more analysts talk about a correction. The markets were fickle the last two weeks, we will see if the good sentiment...

Big News Day
1/27/10 Mortgage Backed Securities are plus 6bp this morning. The FOMC ends their two day meeting with minutes being released at 1:15. The President gives his first State of the Union tonight. US home sales dropped in December. These factors have put the markets in a very nervous and cautious mood. This has been good news for the bond markets. We are currently at the bottom of our estimates for first quarter rates. We feel now would be a good time to lock. The State of Union,...

FOMC in Focus
1/26/10 Mortgage Backed Securities are plus 16bp this morning. The FOMC starts their two day meeting today. The markets will be waiting to see if there is any change in policy that comes out of this meeting. I have not read anything that would suggest that it is even being considered. However, the Fed Chairman has been getting heat for leaving money too loose and possibly creating a new bubble. This may spark a change in language , but not not a change in policy. It could get...

Jitters
1/25/10 Mortgage Backed Securities are minus 9bp this morning. It was a widely held opinion that the Fed Chairman would be confirmed without much resistence. There are now talks that he may not get confirmed. This has caused a downward spiral in the stock markets and a pause in the bond markets. The feeling was the economy was on a slow and steady course toward recovery. The politicians want to punish the Fed Chairman for leading us down the wrong path originally. They want to bring...

Not So Fast
1/21/10 Mortgage Backed Securities are plus 9bp this morning. There will be no Mortgage Rate Commentary Friday. The Philly Fed, which tracks manufacturing in the region, came in a great deal lower than expected. This report is inline with the jobs report that said more people filed for unemployment last week. It is being reported that 1 out of every 6 Americans is unemployed or under employed. Not exactly the stellar picture Wall Street is painting.

The President...