9/24/07 Market Snapshot
Following the Feds decision to cut rates, the treasury prices and Mortgage Backed Securities immediately rallied, then reversed to close lower on the week. The reversal came as market players became concerned about the risk of future inflation. The .50 pt. improvement was more than most analysts had forecast. It may take several more days for the markets to fully digest the possible implications of the fed move, so mortgage rates may be jittery for the next several days. This week we’ll see substantial amounts of economic news reported, mostly on Thursday and Friday. The markets will be especially focused on Home Sales data to be released, beginning on Tuesday.