Mortgage-Backed Securities (MBS) held steady this morning, with stocks experiencing slight declines due to ongoing pressure on Boeing. Renowned investor Bill Gross has voiced concerns about overvalued Treasuries and expressed his preference for Treasury Inflation Protected Securities, signaling a positive outlook on mortgage rates. Small Business Optimism showed improvement in December, though inflation remains a major concern. Job openings remain high, but future hiring plans appear to be scaling down.

In a surprising turn of events, the president of the National Association of Realtors has resigned amid what seems to be a blackmail operation. Short-term inflationary expectations have hit a three-year low, providing the Federal Reserve with additional reasons to consider rate cuts, given rising real short-term interest rates and falling inflation. Market trends have been rather indecisive recently, with a narrowing range, potentially in anticipation of December’s CPI release. Keep an eye on Treasury auctions for potential volatility. UMBS closed the day relatively flat, up 2 basis points to 101.19. Stay tuned for more updates on the dynamic real estate and mortgage market.

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