Yesterday mortgage backed securities (MBS) dropped in price increasing consumer costs by .25 in discount.  Lenders where quite conservative yesterday with the rates they offered to hedge against any unexpected events over the 3 day weekend. 


All markets are closed today in celebration of Good Friday and Easter weekend; however, banks are open for business.  We will get rate sheets from lenders but I suspect they will be very conservative with par 30 year fixed rate mortgages anywhere from 4.75% to 5% for the most qualified consumers. 


Next week we do get some new economic data that can move the markets.  On Tuesday and Wednesday, we get inflation data on the producer and consumer level.   Since inflation is the biggest enemy to mortgage rates, investors will be paying these reports a lot of attention.    We are also getting retail sales data, industrial production, housing starts, jobless claims and consumer sentiment among others.   We have a busy week next week not just for economic reports but also corporate profit and losses.  I will bring you all the action and a detailed week in review on Monday.


I hope everyone has a pleasant holiday weekend.