Prices of Mortgage Backed Securities (MBSs) and Treasuries fell this morning despite gloomy economic news. The run up in MBS prices could be due to some profit taking (rates higher) by traders as well as due to the glut of Treasuries on the market. The Feds are learning that there aren't as many takers as they had hoped to buy Treasuries to help finance the massive government debt.
In other news, the president announced a Homeowner Affordability and Stability Plan. Basically, the plan is a massive foreclosure prevention program that will help stabilize the housing market and keep people in their homes. The details of the plan are not yet finalized and will not be announced until March 4th.
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Lew Corcoran, ASP®, IAHSP, IAHSP-CB