Mortgage Backed Securities are minus 22bps this morning.

The headlines are stating that the equity markets are soaring based on a Housing Starts report that states a 14.6% increase. Single Family homes in that report were actual flat and the big increase was in Multifamily units. More Americans can not afford to buy and are renting should be the headline. The economy and government has made more renters than homeowners.

In an article at http://www.marketwatch.com/story/housing-starts-rise-146-to-five-month-high-2011-07-19?link=MW_latest_news the writer takes issue with the report and its contents. I have included the quote.

"In most months, the government can't be sure whether starts increased or decreased -- in June, the standard error for starts was plus or minus 10.9% -- and large revisions are common."

I thought stock brokers did research before they jump in with the herd. Single family starts are flat with a plus or minus of 10%. They could have decreased for all the brokers know. It is common for large revisions later. Equity markets are looking for any reason to move higher. This will bring volatility back to the market. We were down 100 points on the Dow yesterday and up 100 today.

Milwaukee mortgage rates are flat today. With the volatility in the markets it would make sense to lock on the dips.

www.mortgageserviceswi.com/rates