9/10/07 Market Snapshot
Mortgage Back Security (MBS) prices continue to improve and mortgage rates are dropping as the 10 yr. bond yield drops. Pressure is mounting for the Feds to reduce the Fed Funds rate at their next meeting on September 18th and most financial markets have already priced the expected reduction into their pricing. However, several Fed officials have recently commented that the Fed continues to be resistant to reducing the rate because of inflationary concerns. Focus this week will be on the Retail Sales and Industrial Production numbers on Friday.