Slight Uptick in Rates

Mortgage rates continue subtle upticks as the Treasury bailout plan gets Congressional scrutiny. Treasury Secretary Paulson and Federal Reserve Chairman Bernanke were in the hot seat yesterday as Congress probed for clarity and battled for tweaks to the bailout proposal. Although expected to past in some form relatively quickly, there is still much blood to be spilled in this legislative battle. Meanwhile, the markets continue to be punished for early exuberance. The Dow finished lower for the second day in a row as Treasury yield spreads steepen in the bond market. Consensus is that most trader are still on the sidelines awaiting clarity. Expect mortgage rates to continue relative stability, trending slightly higher.