The big news is that the Treasury Department has stepped in and placed Fannie Mae and Freddie Mac into conservatorship. This is hugely important as Fannie Mae and Freddie Mac insure over 5 trillion dollars in mortgages and their failure would almost completely shut down the mortgage industry. We will not bore you with all the details of this action by the governement; however, this action was taken to help stablize the mortgage markets and lower rates. We have already seen rates this morning improve by almost 100 basis points or a .25% in rate. It appears that this action taken by the Treasury Department has been accepted very favorably by investors. As always stay tuned to this site and we will update you appropriately. If you will like to get more information on this action taken by the Treasury Department, click the link at the top of this page to the professional blog as it has more of the nuts and bolts.
To summarize, float. No reports are being released this morning that are relavant to the mortgage market. Later this week inflation data will be released in the form of the producer price index which shows inflation at the producer level.