Other than a big bump in the road on Thursday, Mortgages held steady throughout the week.
The markets, as we discussed, made a bet on the current inflation data "not mattering" as much as it should due to recently lower commodity prices. Then on Thursday, oil spiked up, and a tinge of panic set in.
On Friday, however, oil was down again, and some soothe was spoken from Bernanke and Buffet.
Focus this week is on Fannie and Freddie news. There is nothing scheduled as far as a bailout, but some analysts think some sort of definitive announcement is coming this week. Part of last week's strength was due to this expectation.
Friday saw a lot more buying of mortgages than treasuries. This morning is the opposite. Exisiting home sales comes out at 10AM eastern.
So far, mortgages are slightly improved this morning, but the day is young and anything can happen, especially when treasuries have improved so much this morning and mortgages not so much. The good news is that the general tone and "buzz" this week seems to be more positive than negative.