Market Update

After rocketing higher last week, Stocks are under selling pressure and this has helped Mortgage Bonds modestly improve.

The Institute of Supply Management will be reported at 10am. The market may not have much reaction to this release - but stay tuned.

At 1:45pm ET today, Federal Reserve Chairman Ben Bernanke is speaking on the economic outlook at a Dallas Fed conference, Treasury Secretary Henry Paulson is due to give an update on the US economy and our good friend Richard "Loose Lips" Fisher is also scheduled to talk. Mr. Bernanke's speech could be very interesting as he has a chance to hint about further rate cuts - especially with the next Fed Meeting on December 16th. There are rumors swirling the Fed will take the Fed Funds Rate down to zero. But we think a move to .50% is more likely. The current Fed Funds Rate stands at 1%.

Black Friday kicked off the holiday shopping season and the National Retail Federation estimated shoppers spent 7.2% more than last year. However, this is a result of the deep discounting seen by retailers.

Mortgage Bonds are testing resistance at the best price levels of 2008. We will float, but be ready to lock should conditions change.