Today's market is set to open lower as the first of several reports today and this week is out and is much worse than predictions. The Commerce departments report on December retail sales shows the worst numbers since 1969. Sales were down more than 2 times expectations- -2.7% compared to   -1.2% predictions. This is the first year that OVERALL yearly sales showed a negative. Other reports due out today include a report on Business inventories and the Fed Beige Book report highlighting regional activity. These reports will set the stage for many more earnings reports due this week and next with the banking sector leading the way. JP Morgan is set to release figures tomorrow, a week ahead of schedule. Banking results are the big news for the day and week as Global results are also coming out and they are not good. Deutche Bank has reported a 4th quarter loss of over 6 billion and Commerzbank is now 25% owned by the german Government. The Royal bank of Scotland is now majority held by Britain and HSBC is looking to raise over 20 billion and will cut it's dividend in half as it's capital has dwindled more than expected. So, is Citi the next bank to be Nationalized?

The TNOTE Yield is reflecting the uneasy sentiment starting the new year. It has dropped to open the morning near 2.27%, down from yesterday's close of 2.297%. Rates changed several times yesterday in response to the market which was up and down before settling down slightly. I anticipate that today will follow suit but with wider swings. Yesterdays rates still held near 4.75, but trended closer to 4.875%. I see pricing coming back down as more investors lean to government notes as opposed to the weak, unstable market offerings. If this trend continues, rates may come close 4.5% by the end of the month. Of course, this is my opinion, but the rate market reached that level and below just a couple weeks ago and I wouldn't bet against the same occurring in the upcoming weeks.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION