Today was a surprise day for Mortgage Backed Securities; many prognosticators thought for sure we would see MBS plummet and start pushing Mortgage Rates towards 6% , with the signing of Obama’s Economic Stimulus.  The MBS (FNMA 30 YR 4.5%) acted in contrarian nature and posted a whopping 50pb gain.  Many lender were slow to issue price improvements, we should have retained .25% in Mortgage Rate Improvement vs. the minimal .125% given as a gesture by the majority of lenders.

Obama signed the Stimulus and we are now well on our way to our generations largest investment in infrastructure.  How does the Economic Stimulus benefit YOU!

Tomorrow brings two Economic housing indicators:

• Building Permits
• Housing Starts

Both of these reports have moderate to minimal rate influence, watch for the FOMC Minutes to bring the activity to rates tomorrow.



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