Housing starts and sales rise.

Mortgage Bonds are trading higher this morning following a similar pattern this week with higher prices in the morning but the rally fizzles out by mid afternoon.

In housing news, Housing Starts rose 2.3% while Existing Home Sales rose by 7.8% in August. Building Permits fell slightly.

With home loan rates back at record lows, they may not be able to go much lower from here. Robert Shiller from the Case/Shiller Home Price Index said yesterday that he also feels that rates will not fall much further from current levels.

I feel that Locking in the short-term is prudent.

Leonard Winslow
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