Rate Update December 9, 2008

Interest rates crept up a bit yesterday even as bonds continue to trade fairly sideways.

No economic news is scheduled today so we will continue to look at the stock market for any movement. So far in trading today stocks are trading a bit lower which may give mortgage bonds a little support. We will continue to take a floating position to see if bonds can trade high enough to get rates back to levels we saw late last week and yesterday.

Current Outlook: neutral but ready to lock short-term