Today our 5.5 mortgage backed securities opened a little below yesterdays close. We had a stong day yesterday for mbs and today we appear to be in a holding pattern.

Today brings us the release of the minutes from the last fed meeting. These minutes gives investors insight into the thinking of the federal reserve board. We get this information at 2pm eastern time and if there are any surprises within, we will get back to you. Earlier the fed announced that they will start buying commercial paper. This news relates to us as it will create more liquidity. Initially, the Dow loved the news and shot higher but since has turned back to the negative.

As for rates, we dont have any clear direction as of yet today. There will more then likely be a struggle between the stock market and the bond market. If we have a big improvement in the Dow, it could be at the cost of bonds. MBS are off the lows of the day but still not back up to yesterdays close, but we should see the same rates today that we had yesterday. If you are closing soon, locking today may not be a bad idea, but for longer term closings, float club appears in order.

As i am finishing typing this update, our 5.5 FNMA mbs has improved back up to the closing level of yesterday.