Mortgages are slightly improved today as mortgage bonds trade modestly higher with Treasuries this morning in what is shaping up to be a very quiet and uneventful start to the week that ends with the biggie jobs report. The other number that will most likely move mortgage rates is Thursday’s prepayment report. Today’s news is little more than an unchanged report of existing home pending sales. Stock Markets are trading to the positive for a second day and bonds are holding their ground at the moment.

MBS: +6bps
Dow: +81.67 --- 10,267.00
Oil: +$2.36 --- $76.79

Mortgage rates worsened today as mortgage bonds continue to lose ground after yesterday’s FOMC rate decision. Although the Fed decided to keep rates low for and extended period and offered no changes to the MBS program, Bonds did not take kindly to the text. Many blame the lone dissenter, Kansas City Fed President Hoenig, for not showing a united Fed determined to keep rates low. He is a known inflation hawk and his views should be no surprise, but markets will be markets. And now we find ourselves .250 to .375 worse post FOMC decision despite the stock markets losing more ground today. In news released today: Chicago Fed economic activity decreased in December while durable goods orders increased and jobless claims decreased. Overall not a bond friendly set of data. Today brings the last of this weeks Treasury auctions with $32 Billion of 7-year notes being offered up. Yesterday’s 5-year went well. Let’s hope the same for the 7s today. Results due around 10am. MBS attempted a recovery earlier but are stubbornly staying negative widening a bit to Treasuries…

MBS: +6bps
Dow: -115.70 --- 10,120.46
Oil: +$.022 --- $73.64

Mortgage rates are level today as mortgage bonds trade near unchanged following Treasuries ahead of today’s 2-year auction (results around 10am). Initially improved this morning, bonds have lost some luster after the release of better than expected consumer confidence (nobody’s dancing in the street, they’re just “less gloomy”). And some good news on the housing front: home prices appear to have risen yet again for 6 months in a row. The asterisk to the data is to what extent the tax credit has distorted price levels. The MBS market continues to be a limited affair with the Fed buying up more than the non-government players can provide including us originators. The FOMC rate decision looms tomorrow and while all expect the funds rates to stay put, many are waiting to hear if the gravy train to which we’ve grown accustomed will continue or end as scheduled.

MBS: +7bps
Dow: +65.83 --- 10,262.69
Oil: -$0.51 --- $74.75

Mortgage rates are level mortgage bonds widen a bit with somewhat weaker Treasuries. Stock markets opened up worse from yesterday’s selloff, but have since paired much of the morning’s losses, pressuring bonds. Today’s session is data less so bonds will be looking to the stock market movement which did not take kindly to President Obama’s proposed banking regulations (financial stocks, at least). The what, how and when isn’t clear so much speculation abounds. Adding fuel to the fire, Barney Frank proposed abolishing Fannie and Freddie in their current forms. Again, no details yet. Last but not least, mounting opposition to renewing Bernanke’s chairmanship is reaching new levels. Things are getting interesting folks…

MBS: -11bps
Dow: -216.90 --- 10,172.98
Oil: -$1.92 --- $74.16

Mortgage rates are level with Friday’s rates as mortgage bonds open lower from Friday matching investor pull back pricing due to Monday’s market closure. Treasuries are trading lower as well after two days of gains. Not much in the way of economic data was released today but tomorrow brings producer inflation data and jobless claim numbers are due on Thursday. Bonds are firming a bit from earlier morning losses and the Dow is up about 80-points at the moment. Trading conditions are still thin so be prepared for continued volatility.

MBS: +10bps
Dow: +95.23 --- 10,704.88
Oil: +$0.05 --- $78.05

Most rate prices are level with yesterday as mortgage bonds attempt to hold onto Tuesday’s gains as bonds are under pressure ahead of today’s 10-year Treasury auction. Yesterday’s 3-year auction went well and bonds benefitted. The market is stuck in a holding pattern as originator supply remains anemic allowing the Fed to easily soak up supply while servicers and private money remain on the sidelines. The big question marks looming in the next few months: will the Fed extend the buying program? Will the homebuyer tax credit be extended? Will Fannie and Freddie dump assets in adherence to new accounting rules? Will private money take up slack? Meanwhile the big guns of Wall Street are busy on cap hill explaining how we got ourselves into the mess we’re in…

MBS: -18bps
Dow: +43.23 --- 10,670.49
Oil: -$0.88 --- $79.91

Mortgage rates improved today as mortgage bonds hold firm to Treasuries which are benefiting from a disappointing start of corporate earnings reports. Reports released this morning showing a widened trade deficit and gloomier small business confidence are also helping to shift gains from stocks to bonds as sentiment begins to shift towards a possible stall in economic recovery. Buyers have emerged this morning ahead of today’s $40 Billion 3-year Treasury auction as sellers remain in the wings including us originators pushing the 10-year benchmark yield down to 3.73% at the moment. The momentum has slowed a bit but another push is anticipated albeit of smaller proportion. We’ll see if buyer strength can offset the auction supply this week and keep rates moving lower. Inflation data in on tap for Thursday and Friday…

MBS: +46bps
Dow: -81.01 --- 10,582.98
Oil:-$1.21 --- $81.31