The 5.5 is off around 12 ticks so far this morning, after spiking up near yesterday's highs.

We are in a "zone" that corresponds to the years previous highs. So, there's going to be choppy trading. The most disturbfing thing about this morning is the slight widening to treasuries. Really? You excpect us to believe the markets got all of the tightening out of their system yestereday? Too soon to tell, but my guess is that the Fed would like to see a bit more tightening.

Whatever the case, we don't really have enough data this AM to justify the movement we are seeing. With oil down, stocks relatively flat, treasuries off an eighth and change, and of course MBS down .375, things just don't add up. There are a lot of speculative and psychological considerations for current trading. Perhaps the markets have a little case of buyer's remorse!

Being off 12 ticks in the 5.5 right now may be cause for concern for some. If it is, and you don't have rate sheets yet, you might consider locking with a 24 hour locking lender. For you float-clubbers, as always, it's about TIME. You got a bit? The risk we run is continued selling, but the potential gains will probably offset that risk for you.

The 5.5 is "hanging out" right around the 101-04 mark. Going much below this would be a bad technical indicator for the rest of the day. We'll keep you posted as events unfold,