Market commentary

With no major economic releases today the markets are fosusing once again on the renewed sovereign debt issues and the Euro zone's ability to manage them. Greek debt was pushed further into junk status by Fitch on Friday, and S&P dropped the rating on Italy from stable to negative. In today's trading the Euro is declining against most major currencies, and global stock markets, including the U.S., are falling. We are seeing a flight to safety rally in the U.S. dollar and Treasuries, which is also helping the mortgage market. Pricing on mortgages has improved approximately .25% from Friday.