The week started out in a positive manner with rates improving both Monday and Tuesday, only to stall out on Wednesday and give back the majority of the gains Thursday and Friday. Mortgage Backed Securities ended the week with only a slight 3bp gain over last week. Friday we saw MBS give up -28bp (FNMA 30 YR 4.5%). Thursday’s and Friday’s losses could be attributed the looming passage of Stimulus v.2.0, which passed the House today. Overall Mortgage Rates ended the week higher.

News of the existing banks Foreclosure Moratorium is front running Obama’s foreclosure plan which is slated for mid next week. There may be light at the end of the tunnel after all; with every public and private entity focused on solving the Housing Crisis we have to be near the bottom?

• Freddie Moratorium
• Existing Banks Moratorium
• FED MBS Program
• FED Funds 0% Rate
• Treasuries Financial Stability Plan
• Stimulus 1 & 2
• Obama Foreclosure Plan

Next week’s Economic Calendar is looking rather weak as far as Mortgage Market Moving data, look for rates to possibly increase with the full passage of the Stimulus.

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