Rate Watch 5-4-2009

Cautiously Floating:
After last weeks sell off, mortgage backed securities prices are rebounding today.
Warren Buffett is saying that he is very optimistic about the Residential Housing Sector and this is giving housing a boost today. Pending home sales come in much better than expected at 3.2% vs expectations of 0.0% spurred on by loan home rates and the $8,000 tax credit. Stocks are soaring this morning after a reasonably good past couple of months. Oil higher at $53.53/barrel up 32 cents. (OUCH) Higher gas prices are no friend of mortgages.