Market Analysis

The mortgage market opened in negative territory, with all the economic data released today stronger than expected.  In later morning trading bonds are getting closer to breakeven. 

In economic news, initial estimates of Q4 GDP showed an increase of 5.7% which was much better than the 4.5% expected.  For all of 2009, the initial estimates show  the economy shrank 2.4%, the worst single-year performance since 1946.  The January Chicago purchasing manager's index came in at 61.5 which was much better than the 57.4 expected.  The University of Michigan final consumer sentiment index for January came in at 74.4 which was better than the 73.0 expected.