Our 5.5 FNMA bond has opened higher today resulting in about a .25 to .375 improvement in discount, this means rates are better for mortgages.

This week brings us very little in regards to market moving economic data. Today there are no relevant reports, Tuesday brings us the release of the minutes from the last Fed meeting, Wednesday brings us pending home sales, Thursday we get the release of jobless claims and Friday, the week is capped off with Import prices and trade balance. Historically, none of these reports are major market movers for our mortgage backed securites so it appears we will have to ride the wave of headline reports and tape bombs.

All major stock markets moved lower today and appears that our very own DJIA will also open lower. We are seeing a flight to quality with investors selling equities(stocks) and buying fixed income(treasuries and MBS). Treasuries are enjoying more buying and the spread, which is the difference in yield between mbs and treasuries, continues to stay at historically high levels. Float club is in session and it appears to be safe to stay in the pool!