The market was smooth at the beginning of the week and is ending the week with a little volatility resulting in a little bit of a rate increase towards the end of the day. As the Japanese market starts to stabilize, so will the other global markets resulting in mortgage rates flattening out in the 5.000% range again.
MARKET COMMENTS:
Mortgage Backed Securities are up +16 bps from yesterday’s close (4.5% coupon now @ 101.94) and the Stock Market is up +76.18 at 12,246.74 this morning. Both Bond and Equity markets are now trading at pre-tsunami levels. Q4 GDP up +3.1% and Consumer Spending up +4.0%. U of Michigan Consumer Sentiment dropped to 67.7, lowest since 11/09. Oil is $105.40 per barrel and Gold is $1,434.48 per ounce.
