Market Comment

Mortgage Bonds continue to drift lower after topping out recently on December 8th.
Pressuring Bonds lower this morning was a better than expected Retail Sales Report for November, marking the third monthly increase over the past four months. Consumer Sentiment was also reported quite a bit better than expectations.
Currently, Bond prices are approaching an important dual-layer of support at the 100- and 200-Day Moving Averages. I recommend floating for now to give Bonds a chance to improve. But be prepared to lock if prices resume their downward trend.

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