Mortgage Market Report for Thursday January 17th, 2008

Mortgage Market Report for Thursday January 17, 2008

Volatility continues. Bonds have rebounded off Ben Bernake's testimony before the House Budget Committee.

He talks about no recession but slow growth. He says that the US economy remains resilient and has inherent strengths. Bernake's comment of no recession means that the Fed cuts may not be as deep as the market would like to have. Selling of stocks and money being parked in bonds today is helping to improve Bond prices this today.

The mortgage bond has the leash effect and has like a dog on a leash being pulled back if it moves away too quickly. The bond is somewhat in an overbought state. Because of the recent price appreciation we recommend to float but with a finger on the lock trigger. Should the stock market suddenly improve as it did yesterday it could trigger volatility in the bond market.

Thank you for listening to contactherrick.com. We will have another report for you, your family, your friends and your important business contacts tomorrow.

A quote from Benjamin Franklin

"Never leave that till tomorrow which you can do today."

Thank you

Roger Herrick

Mortgage Broker