I received this article this morning...a little insight on rates...
Mortgage Market Commentary
MBS prices opened slightly higher today as consumer confidence edged lower in January as shoppers worried about their jobs and watched the value of their homes and retirement funds dwindle. FNMA 4.5% coupon 101.31bps, +1bps. Fed begins two-day meeting to decide the next step in monetary policy aimed at lifting the economy out of recession. With 30yr fixed rates averaging 5.12% and 10yr note yielding 2.62% the "spread" is 250bps; since 2000 the difference has averaged 186bps. Meaning, with everything being equal rates should be about .625% lower; that I can handle.
published by www.tbwsratealert.com
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