So far this morning, mortgage backed securities are continuing their winning ways and are higher on the day.  Remember, as the price of mbs moves higher, the yield or mortgage rates, moves lower.   

This week is very light on data and is shortened due to New Years.  On Tuesday we get Consumer Confidence, on Wednesday we get jobless claims and Chicago PMI, and on Friday we get the ISM index.  I do not suspect that any of these reports will have a major impact on mbs price as a lot of traders will still be on vacation and trade volume will continue to be extremely thin.  On Wednesday, the bond market closes early at 2pm eastern and on Thursday will be closed the entire day and will resume normal hours on Friday. 

Our stance of float if closing next month still stands but as always, if you are happy with the rate, lock and move on.  There is always risk when you float as 1 big headline news item could change things quite dramatically.  Today we should see continued choppy trading with very low volume, if anything substantial happens I will be sure to get back to you.  On a side note, if you are planning on refinancing or buying a new home, expect the loan process to take longer.  Lenders usually underwrite a loan in 24 to 48 hours, currently some lenders are at 12 days for underwriting as the huge influx of loans has dramatically increased turn times and the fact that lenders have reduced staff levels over the year is also adding to the already longer time.  Hopefully, lenders will be in touch with underwriters they might have laid off and get them hired back as quickly as possible but I don’t suspect things to get much better for several months.