Holding Pattern

7/28/10 Mortgage Backed Securities are plus 12bp this morning. Consumers buying big ticket items has decreased from last month. This has soured the markets this morning. We are also in a holding pattern waiting for the release of the FOMC's Beige Book. The language of the Beige Book looks to be recycled. We have not heard any new verbiage from the FOMC in quite sometime. I guess we will wait and see.

Here is a list of high impact news being released in the near future: Consumer Confidence will be released Tuesday, Jobless claims and the Biege Book Thursday and Chicago PMI and Employment cost index on Friday.

A 35bp move usually represents a change in interest rates of .125% in either direction. Rates typically move up twice as fast as they move down.

These are the views and opinions of Douglas Lenski, President of Wholesale Mortgage Services of Wisconsin. Douglas is a seasoned mortgage professional, and derives information from daily study of market trends, mortgage publications and other industry input.