Uncertainty
5/06/10 Mortgage Backed Securities are plus 19bp this morning. The stock markets are down again today. Instability in the European markets (see below) are continuing. With stabilization in the region comes higher rates. This was a nice opportunity to lock. It will not continue without another collapse of the markets. I will keep an eye on the markets and a finger on the lock button.

Instability in foreign currency has caused the markets to plummet the last few trading...

The Euro
5/05/10 Mortgage Backed Securities are plus 12bp this morning. Instability in foreign currency has caused the markets to plummet the last few trading sessions. Now there are riots in the streets of Athens. The economy is now a global economy. The US is dependent on the sales of our goods and services in all of Europe. The US economy has recovered based on the spread between the the Euro and the Dollar. You could buy US products for less based on the exchange rate. If the Euro keeps...

Same Story
5/04/10 Mortgage Backed Securities are plus 12bp this morning. I am going to leave up yesterday's commentary. Nothing has changed our view moving forward.

We have stated over and over that rates in June are .375% higher than rates in January (they were at 5.00%). May historically has returned more stock market gains than any other month. The Fed has inferred that they may start selling MBS. The spring buying season is here and buyers will be out looking, no matter...

History Lesson
5/03/10 Mortgage Backed Securities are minus 19bp this morning. We have stated over and over that rates in June are .375% higher than rates in January (they were at 5.00%). May historically has returned more stock market gains than any other month. The Fed has inferred that they may start selling MBS. The spring buying season is here and buyers will be out looking, no matter how high the rates. You will not see lower rates the rest of this month and next, than you will see...

Tame
4/29/10 Mortgage Backed Securities are plus 15bp this morning. This mornings inflation reading was tame. This will allow the Fed to keep rates low for an extended period. GDP showed that the economy grew in the first quarter of this year. Consumer sentiment was slightly higher than expectations. The news weighing on the markets is Goldman Sachs being investigated. Goldman had been the media darling for the perfect company. We will wait to see how long it keeps Goldman down. It only took...