Monday - December 9, 2013, 9:55am ET

Current Trend Direction: Sideways to lower

Float/Lock Bias:Carefully FloatingCurrent Price of FNMA 4.0% Bond: $103.81, +6bp

Bonds are up a skosh so far today and thats a good sign after prices got roughed up last week.

Unlike last week, with the market moving Jobs Report this weeks economic calendar is light. However, the Treasury will be selling a total of $64B in Notes and Bonds beginning Tuesday and ending Thursday and this supply will have to be absorbed. With Yields at the higher end of their trading range, we expect these auctions to do OK.

Today features a bevy of Fed speakers around the country - Fed Chairman Ben Bernanke will attend a meeting of the Financial Stability Oversight Committee at 2:30pm ET, Richmond's Jeffrey Lacker will give his economic outlook in Charlotte, NC at 1:00pm, ST. Louis Fed President James "Raging Bull" Bullard will be on his home turf discussing monetary policy and the economy at 1:00pm while Dallas Fed President Richard Fisher will be in Chicago.

Over in the housing industry, CoreLogic reported today that 48K completed foreclosures were reported in October compared to 68K in October 2012, a 30% decline. In addition, the foreclosure inventory declined by 28% this year while the rate of serious delinquency is at its lowest level since November 2008. This is good news for the industry, but with almost 900,000 properties across the nation still in foreclosure a level four times the norm lets hold on the applause just yet the housing recovery has more to go.

Technically, Mortgage Bonds continue to stabilize after last week's drubbing. We recommend floating to begin the week.

Joe Shamie NMLS # 241432

First Choice Loan Services NMLS # 210764

First Choice Bank NMLS# 177877

866-970-3400 x-5135

jshamie@fcbmtg.com