3/31/10

Most rate prices are near unchanged today. Economic data was mixed today with better than expected Factory order numbers tempered by a worse than expected Chicago region production index. Both numbers, however depict a slow and sometimes sputtering but nonetheless forward moving economic recovery. Today is the last day of the Fed’s MBS buying spree which has given them ownership of $1.25 TRILLION in MBS. Overseas demand, GSE buyouts putting money back into the market and the well-telegraphed timing by the Fed are believed to mute most negative effects of the pullout. One thing is for sure: we will see great volatility in rate pricing. So fasten your seatbelts. The ride could be a little bumpier from now on…