As most will know Obama has won the presidential election and will become our country's 44th President.

Mortgage backed securities have been in rally mode. Yesterday in the face of a big stock market rally, mbs improved around 100 basis points, dropping interest rates by .25%. So far this morning it appears the rally might continue. A big factor pushing this rally is the libor rate continues to drop. With a lower libor rate, investors can borrow money at lower rates to reinvest in other vehicles such as mortgage backed securities.

The only relevant reports today are the ISM Services index which came in below expectations at 44.0. This report like all others continue to show weakness in our economy. We also had the release of the ADP jobs numbers which showed a loss of 157,000 jobs. This report is historically off when compared to the official government numbers which are released Friday. The official report is estimated to show a loss of 200,000 jobs.

It appears that you can safely float your rate but be prepared to lock if the market starts to turn negative. We saw a huge improvement yesterday and after a big rally it is not surprising to see a little set back, but it appears lower rates are in our future.