Much Appreciated… November 26, 2013 Better buying from Asia this morning caused a rally right out of the gate. These gains were solidified when the European Central Bank made some bond-friendly comments. However, the rally didn’t last long as trade volumes are leveling off for the holiday. In other news, Consumer Confidence came in weaker than expected but the market shrugged. FHFA announced home prices rose 2 percent in the third quarter. That sounds good, except that’s down from 8.4 percent in Q2. The largest one year increases were in Nevada, California, Arizona, Florida and Washington. In a surprising move today, Fannie and Freddie kept conforming loan limits unchanged for 2014 at $417,000 and $625,000 for specific States. Looks like the higher coupons are still seeing disproportionate volatility due to Mel Watt’s expected confirmation as the head of the FHFA. He is a proponent of the HARP program and investors are shying away from the higher coupons hoping the Fed keeps rates low. Initial jobless claims should increase and durable goods orders fell according to Bloomberg survey, data will be released tomorrow.