This Week in Mortgage News provided by Virna Brown of Greenpark Mortgage

This Week: starts with Fed chief Bernanke on Monday morning at 8:30. This week we will call election eve all week and the eve of the long awaited meeting next week when markets will hear what the QE is all about. Treasury has $109B of auctions to deal with this week; Monday $10B of 5 yr inflation indexed notes, normally not a market mover. Tuesday through Thursday $99B of 2 yr notes, 5 yr notes and 7 yr notes will be auction; two weeks ago for the first time in months Treasury auctions didn't meet with the expected demand so the auctions this week will be closely monitored.

Economic data includes Sept existing home sales on Monday and new home sales on Wednesday. On Friday the first advance look at Q3 GDP growth; two reports on consumer confidence, Tuesday the Conference Board's consumer confidence index, on Friday the U. of Michigan consumer sentiment index. The interest rate markets will likely continue their choppy trade with not much directional change through the week. The elections next Tuesday, the FOMC meeting next Wednesday; both will dominate markets. The overwhelming consensus based on every poll is that Republicans will take control of the House and possibly the Senate; it will be the margins of key elections that get all the focus; wide margins of victories will add to whatever outlook one wants to adapt. On the MBSs, mortgages are getting a closer look these days from investors looking for higher yields. The only estimate I have seen on the impact of the coming QE is that if the Fed announces a $500B buy of treasuries the 10 yr note may move to 2.25% frm 2.58% at the close last Friday.

Provided by: Virna Brown

Greenpark Mortgage Corp.
Office: 508-369-6988

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