MBS UPDATE: DOING JUST FINE

The MBS stack has stayed in a tight range all morning. Several investors have passed along gains to rate sheets this morning. Be aware of profit takers. Follow GUT-FLOP!!!!

1215pm Marks...

(since 3pm Close)

FN30_________________________                            

FN 4.5 -------->>>> +0-07 to 101-04 from 100-29                                       

FN 5.0 -------->>>> +0-05 to 102-01 from 101-27                                   

FN 5.5 -------->>>> +0-04 to 102-14 from 102-10    

FN 6.0 -------->>>> +0-03 to 103-04 from 103-01                                        

GN30______________________

GN 4.5 -------->>>> +0-07 to 101-19 from 101-12

GN 5.0 -------->>>> +0-06 to 102-18 from 102-12

GN 5.5 -------->>>> +0-03 to 102-27 from 102-24

GN 6.0 -------->>>> +0-01 to  103-10 from 103-09

The stack remains stable...so do TSYs. The Dow is looking for reasons to rally.....

On Capitol Hill there is word that politians are getting closer to a finalized version of the Stimulus Package...ill believe it when I see it...

If you want to watch progress you can do so on CSPAN...CLICK ON ME

Mortgage Applications

Press Release: http://www.mbaa.org/NewsandMedia/PressCenter/67589.htm

As expected mortgage applications fell as rates ticked up last week....

WASHINGTON, D.C. (February 11, 2009) - The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 6, 2009.  The Market Composite Index, a measure of mortgage loan application volume, was 600.6, a decrease of 24.5 percent on a seasonally adjusted basis from 795.4 one week earlier.  On an unadjusted basis, the Index decreased 23.5 percent compared with the previous week and 43.9 percent compared with the same week one year earlier.

The Refinance Index decreased 30.3 percent to 2722.7 from 3906.3 the previous week and the seasonally adjusted Purchase Index decreased 9.8 percent to 235.9 from 261.4 one week earlier. The Purchase Index is at its lowest level since the end of 2000.  The seasonally adjusted Conventional Purchase Index decreased 11.1 percent while the seasonally adjusted Government Purchase Index (largely FHA) decreased 7.0 percent.
 
The four week moving average for the seasonally adjusted Market Index is down 20.0 percent from last week.  The four week moving average is down 8.7 percent for the seasonally adjusted Purchase Index, while this average is down 23.9 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 66.7 percent of total applications from 73.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 2.5 percent from 2.1 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.19 percent from 5.28 percent, with points increasing to 1.20 from 1.12 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.00 percent from 5.15 percent, with points remaining unchanged at 1.21 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.22 percent from 6.09 percent, with points increasing to 0.22 from 0.07 (including the origination fee) for 80 percent LTV loans.

                                                                            **SPECIAL NOTES**

The survey covers approximately 50 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990.  Respondents include mortgage bankers, commercial banks and thrifts.  Base period and value for all indexes is March 16, 1990=100.