In the 3pm-5pm hours, MBS have packed on a few ticks here, a few ticks there, bringing the 6.0 today to 100-22+.

Ginnies are a few ticks better in 6.0's, so expect that FHA pricing to stay extremely competitive.

Today was calm for a low volume day.  Lots of housing data tomorrow with OFHEO and CASE-SHILLER.  

If we had seen more reprices this afternoon, locking might become tempting, and indeed it might be tempting nonetheless, but there is an obvious tone of preparation for tomorrow, which, as always, could go either way.

Just refer to today's earlier comments on the matter.  Again, no one could fault you for locking tonight, but the data seem to suggest you'd be locking at the beginning of a rebound.  Always remember time frame though!  The shorter your time frame, the more you should consider cashing in today's gains.  However, EVEN IF prices merely hold steady overnight, rates will likely improve again tomorrow due to lender hedging today.  Also, the largest moves will probably be reserved for after the FOMC minutes.

Traders will be looking for confirmation that the inflation hawks have indeed taken a dovish turn and that the Fed is as worried about some others about growth prospects.  As always on Fed days, we'll be able to get you out of the water if a real threat to the float boat emerges. Keep in mind, that unless otherwise noted, lock recommendations tonight and tomorrow will apply more to short term lockers or thosebof you with no risk tolerance.