There are no economic reports releasing today.  Right after the closing bell yesterday, Microsoft announced better than expected earnings which has helped stocks to some degree this morning, although the Dow just ticked negative as this is being written, and seems to be dancing around the unchanged mark.

Yesterday's economic stimulus package contributed to a sentiment of "hope" that we would not continue our recessionary slide.  As such, rates had another horrible day rising by over 1-6/3nd's in cost making for one of the sharpest two day rate increases in recent memory.  This drastic rebound is either just that, a rebound, or it is simply the "dead cat bounce."

As a mortgage rate optimist, I prefer the latter, and I hope for it, and I think economic conditions will prove it out.  It's not a matter of "if" but simply of "when."  It would take much greater and much more creative government intervention to overcome recessionary forces.  

 Whatever the case, MBS's have improved only slightly.  With no data today, we'll have to watch stocks, any corporate news, and attempt to gauge reaction to those events in the bonds markets.


Stay tuned.