Market Analysis

Below is Larry Baer's commentary for today. Larry Baer runs a service called Market Alert:

Larry Baer:  Trading activity in the mortgage market this morning is sparse and currently controlled by market participants looking to take profits before closing the books on 2008.

News that the Bush Administration authorized the government to offer up to $17.4 billion in loans to ailing automakers has nudged stock prices higher at the expense of bond and mortgage-backed security prices. Almost immediately after the White House approved the bailout - Treasury Secretary Paulson requested the release of the second half of the $700 billion rescue package. In little more than three months Paulson, with help from Congress, has burned through $350 billion of total funds set aside for the Troubled Asset Relief Program. Congress is leaving Capitol Hill today for an extended Holiday break so approval to spend the $350 billion balance of the rescue package funds will not likely be granted until the Obama Administration takes over on January 21, 2009.

Looking ahead to next week's holiday shortened week there is nothing on the economic calendar -- from Monday's final revision to third-quarter Gross Domestic Product -- through Wednesday's November Personal Income and Spending report -- that will likely pack enough "punch" to influence the trend trajectory of mortgage interest rates one way or the other.