Market Analysis

Stocks are down today (Dow down approx 140 pts) and US Treasury notes are improved.  Mortgage-backed securities (MBS) issued by Fannie Mae and Freddie Mac are flat. 

In economic news, Initial Jobless Claims for the week ended 11/17 were unchanged.  Analysts had expected an increase of 2,000.  The Conference Board's Index of Leading Indicators was up .3% (vs expectations of a .4% increase).  The Philadelphia Fed's General Business Conditions index was up to 16.7 (vs expecations of a 12.0 reading).    The Mortgage Banker's Assocation reported that 9.6% of all mortgages are delinquent (1 payment or more late).  However, the 9.6% does not include loans that are in foreclosure.

On a separate note, yesterday Fannie Mae released a forecast that mortgage originations would drop 30% in 2010 due to lower refinance volume as a result of rising interest rates. Fannie Mae is forecasting a 10% increase in home sales in 2010.