Mortgage Bonds, which sometimes benefit from bad news, have improved on rumors that a large British Insurance company was forced to borrow from the Bank of England's discount window, fueling concerns that the credit crunch continues.

But today's high powered meeting between Fed Chairman, Ben Bernanke, US Treasury Secretary, Henry Paulson and Senate Banking Chairman, Christopher Dodd may have an impact on the direction of the financial markets as they may discuss the possibility of lifting the current conforming loan limits, presently at $417,000.00.

Technically, the Bond appears to have upward momentum and may move higher which could help home loan rates improve so we are advising floating for now.