Mortgage backed securities managed to move slowly higher throughout the day.  This has resulted in most lenders repricing for the better by about .20 discount.  This means mortgage rates improved slightly on the day.  Hopefully, this rally will continue into tomorrow. 

In related news, President Obama signed the spending/stimulus bill into law today.  The most relevant part to our blog will be the first time home buyer tax credit of $8000.  To qualify for this tax credit neither spouse most have owned a home for the last 3 years and they must be buying a primary residence.  The tax credit will be the lesser of $8000 or 10% of the purchase price.  If the homeowner sells this home in the first 3 years, then the full amount of the credit is due upon sale.   There are income limitations as well.  To get the full tax credit your adjusted gross income if single must be less then $75,000 and if married less then $150,000.  This tax credit is phased out for incomes above $95,000 if single and $170,000 if married.

I will get back to you tomorrow with a morning update once the economic reports hit the wires.