Mortgage Bonds Have Held Steady

Mortgage Bonds have held steady on the heels of last night's big Jobs stimulus speech by President Obama.

President Obama proposed a $447B Job Stimulus Plan, which was larger and broader than most had expected.  As we discussed back on Wednesday, the program called for tax cuts, state aid, infrastructure spending, on the job training, plus some surprises like tax cuts for small business to encourage hiring and a "Helping more Americans Refinance Mortgages" or HARP plan.

There are no details to the HARP as the President has just instructed his team to work with Fannie Mae and Freddie Mac, FHFA and Lenders to develop the plan.  Now we must sit back a bit and see the details of the entire plan and then get ready for the political debate.  On the HARP idea - it is worth noting what Treasury Secretary Timothy Geithner said this morning...HARP "does not need act of Congress to allow more refinancings of federally supported mortgages.”  So while some of the President's plan may not be put into action, it appears that HARP, once laid out, may be put into action.