MORTGAGE RATE COMMENTARY

Milwaukee Mortgage Rates Seeing Beige

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Mortgage Backed Securities are PLUS 12bps this morning.

The Fed will release its Beige Book this afternoon. The report shows us the economic condition of current Fed Districts. This report is released 8 times per year. This report could confirm what the Friday unemployment numbers and the Monday Alcoa earning are hinting. The US economy may be getting better. Just do not ask your unemployed neighbor, he may see things differently.

The Treasury had a successful 3 year note offering yesterday. Today they will have a 10 year auction. Tomorrow will be the last auction of the week. We will see the University of Michigan Sentiment report on Friday.

The US equity markets are lower this morning. This is due to the continued concerns surrounding Europe. The first part of this commentary was all positive things for the US economy. A whisper out of Europe and our equity markets take notice. That is why it is hard to predict with certainty the future of rates. We do not believe that they will not stay at historic lows.