Market Comment

Mortgage Bonds are trading sharply higher, due to comments by Fed Chairman Bernanke and falling Stocks.
Yesterday, Bernanke commented on interest rates, inflation, and the economy--saying that recovery faces “formidable headwinds.” Since his speech, Stocks, Oil and Gold have traded lower as investors seek the safe haven of Bonds. Also pressuring Stocks lower is negative news from McDonald's and 3M.
Currently, Mortgage Bonds have gained 100 basis points since last Friday. I recommend floating for now, but be prepared to lock in those gains if today's Treasury Auction shakes things up this afternoon. I will keep you posted.

Leonard Winslow, New american Mortgage
434-760-2580(cell)
leonard.winslow@newamerican.com
Licensed by the Virginia State Corporation Commission. License #: MC-5112