Rate Watch 1-7-2009

Carefully Floating,
"Mortgage Bonds are taking a breather so far today, after a run up the last two days which was fueled by the Fed’s long-term purchase program of mortgage backed-securities.This morning, the ADP Employment report showed US private firms lost a whopping 693,000 jobs in December. This was far worse than expectations of 495,000 jobs lost.The Fed's purchase program should help mortgage rates going forward. For now, I am recommending to carefully float – however with so much volatility in the markets, things can change quickly."