3/30/10

Most rate prices worsened today as mortgage bonds lose ground from Monday levels. Yesterday mortgages benefitted from overseas buying as originator supply was below average, helping to prop up prices and lower rates. Earlier this morning a round of profit taking undercut some of those gains, but bonds appear to be firming up as stocks fade and the Dow turns negative, denying the 11,000 mark once again. Home price data came in line with expectations and consumer confidence data exceeded expectations but was tempered by the sharp decline from last month. Today is expected to be another quiet trading day with tomorrow potentially shaking things up with month end and quarter end activities. And…the end of the Fed MBS program. Many are hopeful we won’t see a sharp rise in rates as investor demand—especially overseas—has picked up.