Mortgage Marked Update as of Monday, November 19, 2007

 2 MORE FULL DAYS BEFORE THE BIG 'STUFF YOURSELF TILL YOU CAN'T STUFF NO MORE' DAY!

I, for one, will be hitting the gym extra hard this week in anticipation of Thursday's feast!  Is it bad when you're working out and you're thinking of what you're going to eat later on that day?  hahahah :) 

OK...now to business.....

The big news was from this morning - Goldman Sachs downgraded Citigroup to a "Sell" from a "Hold", saying that Citi could have to write off an additional $4 Billion due to sub-prime mortgage related losses.  This announcement has applied pressure on Stocks, which in turn has boosted the Bond Market slightly higher.

Tomorrow at 2pm ET, the new and improved, "more transparent" Fed is slated to release the first of its new economic forecasts as well as the Minutes from its October Meeting.  The new quarterly forecasts from the Fed will include their projections on Overall and Core Personal Consumption Expenditure, Real Gross Domestic Product and the Unemployment Rate. The Minutes and forecasts could have an impact on the market tomorrow, especially as Traders look to handicap the December 11th Fed meeting for direction on whether the Fed will cut or not.

Mortgage interest rates are still at 6.375% for a 30-year fixed with no points and the bond market looksl like it will close on a positive note.....so today's stance is a "floating" stance.  If anything changes, I will let you know.

In observance of the Thanksgiving Holiday, the Bond market is scheduled to close early this Wednesday and Friday at 2:00pm ET with a full-day close on Thursday.  

Make it a GREAT day!

Santos