Rate Watch 2-5-2009

Risks favor floating,

Mortgage Bonds are having another volatile morning on the heels of more bad news on the labor front. Initial Jobless Claims reached the highest level in 26 years. In other news, the Senate voted to include a $15,000 tax credit in the new stimulus plan in hopes of revitalizing the slumping housing market. The stimulus bill is still working its way through Congress after being voted on in the House last week, and its impact still remains to be seen.