Market Comment

Mortgage Bonds started out with some early gains and then got a boost after a couple of economic reports hit the headlines.
Consumer Confidence was reported much lower than expectations, indicating that employment and struggling small businesses are weighing on the economy. In addition, the Case-Shiller Home Price Index rose in December, marking the seventh consecutive monthly increase.
For now, I recommend floating, but be ready to lock if the Treasury auction this afternoon changes the situation.

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

Market Comment

Mortgage Bonds started out with some early gains and then got a boost after a couple of economic reports hit the headlines.
Consumer Confidence was reported much lower than expectations, indicating that employment and struggling small businesses are weighing on the economy. In addition, the Case-Shiller Home Price Index rose in December, marking the seventh consecutive monthly increase.
For now, I recommend floating, but be ready to lock if the Treasury auction this afternoon changes the situation.

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

Daily Market Comment

Mortgage Bonds are starting the week slightly higher today after falling below the 200-Day Moving Average last week.

No economic reports are due today, but there will be plenty of news to watch this week, including a number of reports as well as Fed Chairman Ben Bernanke's testimony on monetary policy before Congress on Wednesday and Thursday. Treasury auctions are also spread throughout the week and could move the markets depending on how they're received.

For now, I recommend floating. But with all the news that's in store this week, things could change quickly. I will continue to monitor the situation and keep you posted on any major developments.

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

Daily Market Comment

Mortgage Bonds are starting the week slightly higher today after falling below the 200-Day Moving Average last week.

No economic reports are due today, but there will be plenty of news to watch this week, including a number of reports as well as Fed Chairman Ben Bernanke's testimony on monetary policy before Congress on Wednesday and Thursday. Treasury auctions are also spread throughout the week and could move the markets depending on how they're received.

For now, I recommend floating. But with all the news that's in store this week, things could change quickly. I will continue to monitor the situation and keep you posted on any major developments.

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

Market Comment

Mortgage Bonds are under continued selling pressure this morning, even in the face of relatively tame consumer inflation data.

The Consumer Price Index, which measures prices US consumers pay, came in lower than expected for January. When volatile food and energy are removed from the equation, the Index actually fell. The last time that happened was 28 years ago.

Currently, the path of least resistance for Mortgage Bonds looks to be lower, after falling beneath the 200-day Moving Average yesterday. Therefore, I recommend locking.

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

Market Comment

Mortgage Bonds are under continued selling pressure this morning, even in the face of relatively tame consumer inflation data.

The Consumer Price Index, which measures prices US consumers pay, came in lower than expected for January. When volatile food and energy are removed from the equation, the Index actually fell. The last time that happened was 28 years ago.

Currently, the path of least resistance for Mortgage Bonds looks to be lower, after falling beneath the 200-day Moving Average yesterday. Therefore, I recommend locking.

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

Market Comment

Mortgage Bonds attempted to move higher in early trading, but have since given up their gains after hotter-than-expected inflation news was released.

This morning, the Producer Price Index--which measures wholesale inflation--was reported significantly higher than expected, due to rising energy costs. Also in the news, Initial Jobless Claims came in higher than expected, indicating that the jobs picture is not pretty.Currently, Bonds have dropped beneath an important level of support at the 200-day Moving Average.

Therefore, I recommend locking at this time.

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

Market Comment

Mortgage Bonds attempted to move higher in early trading, but have since given up their gains after hotter-than-expected inflation news was released.

This morning, the Producer Price Index--which measures wholesale inflation--was reported significantly higher than expected, due to rising energy costs. Also in the news, Initial Jobless Claims came in higher than expected, indicating that the jobs picture is not pretty.Currently, Bonds have dropped beneath an important level of support at the 200-day Moving Average.

Therefore, I recommend locking at this time.

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

Market Comment

Stocks are modestly higher this morning in response to a better-than-expected Housing Starts report--and this has applied some selling pressure on Bonds.

Housing Starts for January came in better than expected and at the highest level since July, thanks in large part to the extension of the Homebuyer Tax Credit.Currently, Bonds have support at both the 25- and 50-day Moving Averages.

Therefore, I recommend floating for now.

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

Market Comment

Stocks are modestly higher this morning in response to a better-than-expected Housing Starts report--and this has applied some selling pressure on Bonds.

Housing Starts for January came in better than expected and at the highest level since July, thanks in large part to the extension of the Homebuyer Tax Credit.Currently, Bonds have support at both the 25- and 50-day Moving Averages.

Therefore, I recommend floating for now.

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

Market Comment

Bonds have been trading recently between support at the 200-Day Moving Average and resistance at the 50- and 100-Day Moving Averages…which means they could be primed for a breakout in either direction.

In today's news, Pending Home Sales for December were up significantly from November's reading and up 10.9% over December 2008, as homebuyers take advantage of today's low rates.
Currently, Bond prices are up against a dual ceiling of resistance. Therefore, I recommend locking.

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

Market Comment

Bonds have been trading recently between support at the 200-Day Moving Average and resistance at the 50- and 100-Day Moving Averages…which means they could be primed for a breakout in either direction.

In today's news, Pending Home Sales for December were up significantly from November's reading and up 10.9% over December 2008, as homebuyers take advantage of today's low rates.
Currently, Bond prices are up against a dual ceiling of resistance. Therefore, I recommend locking.

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

Market Comment

Mortgage Bonds are under selling pressure as Stocks pushed higher, due in part to a better-than-expected Institute of Supply Management Index this morning.

In the news, Personal Income for December was reported slightly above estimates, but Consumer Spending came in slightly below expectations as Americans continue to focus on saving and paying down debt.

Overall, the path of least resistance for Bond prices is lower. Therefore, I recommend locking in recent gains.

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

Market Comment

Mortgage Bonds are under selling pressure as Stocks pushed higher, due in part to a better-than-expected Institute of Supply Management Index this morning.

In the news, Personal Income for December was reported slightly above estimates, but Consumer Spending came in slightly below expectations as Americans continue to focus on saving and paying down debt.

Overall, the path of least resistance for Bond prices is lower. Therefore, I recommend locking in recent gains.

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

Market Comment

Bond prices are a little lower on the morning, but are up from earlier levels.
Gross Domestic Product came in better than expected this morning, which is weighing on Bonds and helping Stocks. In addition, both the Chicago Purchasing Managers Index and Consumer Sentiment were also reported better than anticipated, giving Stocks another boost.
For now, I recommend floating, as long as the Bond stays above the 200-Day Moving Average. But be prepared to lock if it falls below that level of support."

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

Market Comment

Bond prices are a little lower on the morning, but are up from earlier levels.
Gross Domestic Product came in better than expected this morning, which is weighing on Bonds and helping Stocks. In addition, both the Chicago Purchasing Managers Index and Consumer Sentiment were also reported better than anticipated, giving Stocks another boost.
For now, I recommend floating, as long as the Bond stays above the 200-Day Moving Average. But be prepared to lock if it falls below that level of support."

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

Market Comment

Mortgage Bonds are still holding about support at the 200-Day Moving Average, after digesting lots of news.

Yesterday, the Fed confirmed that its Mortgage Backed Security purchase program will end March 31, 2010. In today's news, Initial Jobless Claims showed that the labor market is still struggling, as last week's claims were higher than expected. Durable Goods Orders also disappointed, coming in much lower than anticipated.

I recommend floating for now, as Bond prices try to hold above the 200-Day Moving Average. But be prepared to lock if the situation changes, especially with another Treasury auction on tap this afternoon.

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

Market Comment

Mortgage Bonds are still holding about support at the 200-Day Moving Average, after digesting lots of news.

Yesterday, the Fed confirmed that its Mortgage Backed Security purchase program will end March 31, 2010. In today's news, Initial Jobless Claims showed that the labor market is still struggling, as last week's claims were higher than expected. Durable Goods Orders also disappointed, coming in much lower than anticipated.

I recommend floating for now, as Bond prices try to hold above the 200-Day Moving Average. But be prepared to lock if the situation changes, especially with another Treasury auction on tap this afternoon.

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

Market Comment

Mortgage Bonds are starting the day a bit lower after a strong day yesterday. There are no economic reports due today, but things could heat up with the Treasury auction this afternoon.
In the news, the CEOs of Goldman Sachs, Bank of America, Morgan Stanley and JP Morgan are on Capitol Hill testifying as to how the financial crisis happened. These companies have recently posted enormous profits, so it will be interesting to see how the Senate questioning goes.
After nice gains yesterday, Mortgage Bonds are nearing resistance at both the 25- and 200-Day Moving Averages. I recommend locking for now.

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

Market Comment

Mortgage Bonds are starting the day a bit lower after a strong day yesterday. There are no economic reports due today, but things could heat up with the Treasury auction this afternoon.
In the news, the CEOs of Goldman Sachs, Bank of America, Morgan Stanley and JP Morgan are on Capitol Hill testifying as to how the financial crisis happened. These companies have recently posted enormous profits, so it will be interesting to see how the Senate questioning goes.
After nice gains yesterday, Mortgage Bonds are nearing resistance at both the 25- and 200-Day Moving Averages. I recommend locking for now.

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