Market commentary

Mortgage bond prices fell on Monday and are declining again this morning as investors seem to taking more interest in stocks. Strong earnings from the financial sector and from a few of the big tech names have propelled the DOW past 11,000. The key of course, is what effect high unemployment and the continued slump in residential and commercial real estate will have on economic growth the remainder of this year and in 2011. So far, the minimal increase in interest rates has slowed mortgage applications, however, the spring and summer buying season are upon us. The steep decline in housing prices, the excess inventory and mortgage rates still below 5% still make this a buyers market.