March 20th Mortgage Market Wrap-up

MBS prices are down -7/32 (FNMA 30-yr 4.5 at 101.94), below the initial price level at unchanged. It was a quiet session. MBS markets drifted lower late in the day as investors prepared for the weekend. No economic data came out today. Fed Chief Bernanke's speech was a broad description of financial system conditions and contained little fresh information. The Dow fell 100 points. For the week, MBS prices rose about +27/32.

Next week will kick off with some monthly housing data. Existing Home Sales will be released on Monday, and New Home Sales will come out on Wednesday. Durable Orders, an important indicator of economic activity, will also be released that day. The final figures for fourth quarter 2008 Gross Domestic Product (GDP) will be revealed on Thursday. Personal Income and Consumer Sentiment are on the schedule for Friday. Large Treasury auctions will also be a factor during the week.