We just got the release of the final 3rd quarter gross domestic product and the number came in right where expected at -0.5%.  No reaction from the bond market or stock market on the release. 

Yesterday was a rough day to be a mortgage backed security as sellers outnumbered buyers and drove the price down almost 1 full point.   The only good thing to say about yesterdays trading was the volume was very light and this is to be expected Christmas week as a lot of traders are on vacation.  So, we have to discount, some, the big drop we had and don’t be surprised if we see a continued sell off today as investors go to cash.  So far this morning, mbs have opened about where they closed yesterday.   

In a little over an hour from now we get the release of existing and new home sales, consumer sentiment, and later today we have a treasury auction of 5 yr notes.  I do not suspect that any of this data will move the markets. 

If your loan is closing this month, hopefully you listened to our advice and locked earlier in the month.  If you are closing next month, then you are still in the float boat.  Lenders pricing this morning will be all over the place, with lenders who need more loans being more aggressive in pricing and lenders that are overloaded being overly conservative on pricing.  The bond market is open a full day today and closes at 2pm eastern tomorrow and all day Christmas day.