mortgage update | 01.17.2008 | 30F 5.500%

The FNMA 5.5% Bond has been riding a rollercoster recently.  Today the bond is +12bp which translates into a solid 5.5% 30 fixed rate with no points.  We expect continued volotility as the market digest Ben Bernanke’s testimony.  Bernanke’s testimony confirmed that the Fed does not have a positive outlook for the economy through 2008.  There may be more rate cuts in our future.  The maket moving economic reports this week have been:

Retail Sales -0.40% | below expectations of 0.0%

Consumer Price Index [CPI] .3 | above estimates of .2

Philadelphia Fed Index -20.9 | below expectations of -1.5