YOUR Mortgage Minute -- March 26, 2009

Good Morning,

The economic data released this morning had little effect on the Mortgage Bond markets, as both the final Gross Domestic Product for 4th Quarter and Initial Jobless Claims came in near expectations. The number of people collecting state unemployment benefits has reached yet another new record, jumping to a seasonally adjusted 5.56 Million.

Later today, the government will auction off $24 Billion of 7-year Notes. This will be important to watch, as yesterday's auction showed pretty weak results both in overall appetite for the notes as well as lack of interest from foreign buyers, which in turn applied selling pressure in both Treasuries and Mortgage Bonds.

I recommend careful rate floating for now, as Bonds remain above an important floor of support. I will certainly let you know if the events of the day require a change in direction. In the meantime, I hope that you enjoy the rest of your day. If there is ever anything that I can do for you, please let me know.