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Daily Market Update 2/11/11

Mortgage rates inched lower Friday as a flight to safety due to the situation in Egypt boosted mortgage-backed securities and hurt stocks. This morning, the Treasury released its recommendations for overhauling mortgage giants Fannie Mae and Freddie Mac. The two government-sponsored enterprises (GSE’s) have already received over $150 billion of taxpayer bailout funds since 2008. Treasury Secretary Timothy Geithner offered three reform proposals with varying degrees of government involvement. Debate in Congress over the ultimate fate of the two GSE’s will likely last for several months, perhaps longer. In economic news, Consumer Sentiment rose to 75.1, the highest level in eight months, but fell short of expectations. Next week will be busy in terms of key economic data. January Retail Sales figures will be released on Tuesday, the Producer Price Index, Industrial Production, and minutes from last month’s FOMC meeting on Wednesday, and the Consumer Price Index on Thursday. No other data will be released today.

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