January 26th Mortgage Market Wrap-up

MBS prices are down -3/32 (FNMA 30-yr 4.0 at 99.91), below the initial price level at -1/32. MBS prices fell as low as -7/32 before moving higher. December Existing Home Sales rose to a 4.74M annual rate, far above the consensus forecast of 4.40M (woo hoo!!!). Inventories of unsold homes declined to a 9.3 month supply from 11.2 months in November. Median prices declined 15% from one year earlier. Separately, the index of Leading Indicators came in higher than expected as well. The Dow rose 40 points. Tomorrow, Consumer Confidence will be released at 10:00 et, and there will be a 2-yr Treasury auction at 1:00 et.