Market commentary

The Conference Board reported its consumer confidence index rose to 65.4 from a revised 63.8 reading in March. Perhaps consumers are more confident as the spring weather replaces the cold and snow. It seems unlikely confidence would be higher based on data from the S&P/Case-Shiller index of property values. Residential real estate prices fell 3.3% on a year over year basis from February 2010 to February 2011, the largest decline in more than a year. Given the decrease in home prices and the low interest rates, home affordability is at its best levels in decades. Tight underwriting guidelines and job uncertainty given the fiscal state of affairs in the U.S. are keeping buyers away.

Important topics to note for the remainder of the day are the beginning of the two day FOMC meeting today, gold is still above $1,500, oil remains over $112 per barrel, and the U.S. Treasury will auction $35 billion of 2 year notes.

The U.S. stock and bond markets are both in positive territory today, with the DOW trading higher by 120 points and the yield on the 10 year note falling to 3.34%. Mortgages are better by .125% to .25%.