Mortgage Rates improved by 1/8 today after the FNMA 30 YR 4.5% MBS posted .0625bp gain.  More Obama action pushed the overall financial markets down today. REAL TIME Mortgage Rates

Our current recession has been thus far called ”housing-led” and was predicted to last several years.  Last week’s data, however, provides at least some evidence that the recession may be ending; that the economy may find its way forward sooner rather than later.

Indeed, even members of the Federal Reserve now call for a turnaround starting in as few as 6 months.

For now, market reaction to the unexpected data has been tepid.  Therefore, watch for developments over the coming weeks and — perhaps more importantly — keep an eye on the investor mindset.  If bond markets start to sell-off en masse, don’t be surprised if mortgage rates race higher by quarter-point leaps at a time.

Meanwhile, this week, the biggest data release is Friday’s jobs report.  It’s expected to show unemployment reaching to 8.5% with another 656,000 Americans losing their jobs in March.  As before, if the data isn’t as bad as expected, watch for stocks to rise and mortgage rates to go with them.

After a scary start to the month the FED injections boosted the mortgage market (see chart)

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