Mortgage Rates Stabilizing

There were a number of events last week which influenced both the stock and bond markets. Bin Laden's threat of new attacks, Iran's nuclear program, and disappointing earnings from bellweathers GE and Citigroup caused bond prices to rise last week. In reaction, mortgage rates appear to have stabilized.

Last week new home sales data showed a cooling off, but historically, the housing starts are still very strong. This week's data will include durable goods orders as well as release of the GDP numbers. None of this news should have a major impact on the bond markets.