Market Analysis

The market for US Treasury bonds is down in price, higher in yield this morning.  The Fannie Mae and Freddie Mac mortgage-backed securities (MBS) are relatively flat.  The Dow is currently down 36 points at the 8244 level. 

In economic news this morning the Institute of Supply Management's service sector index came in stronger than expected with at 47% vs an expected 45.5% level.  Anything below 50% signifies continued contraction.  However, the 47% was an improvement on last months 44% index.

This week brings no major economic releases.  As such mortgage rates will be most influenced by trading in the stock market and investor reaction to this US Treasury note auctions.