Financial markets this week could lower rates just a tad!

We have some big numbers coming out this week, with PPI, Building Permits and of course Housing Starts coming out tomorrow.  Treasuries and MBS markets are in a small rally mode since late last week, and a small improvement in rate is occurring,  however, let’s wait and see what the CBOT will do with the futures market after the aforementioned numbers come out.

It appears that there is a better than 75% chance that Fannie Mae and Freddie Mac will need in excess of 15 Billion to continue to operate.  The Fed has said that they will be there for them and I think this will further deteriorate the stock market which is always good for rates.  We are bounding up above the 50 day moving average which is proving to be a hard layer of Resistance to break through.  If we break through we will see a significant rate improvement.  Stay tuned for more as the story unfolds.