Mortgage bond prices remain near the levels where daily pricing was set holding rates steady.

There was no data released this morning.

News out of the euro zone has driven trade for some time with flight to quality buying of U.S. debt helping keep mortgage interest rates low. All is quiet this morning with only minor political stories hitting the wires. A German foreign minister warned all parties to tone down the "very dangerous" rhetoric. "The tone is very dangerous. We must take care not to talk Europe down," Westerwelle said in a statement. He added, "We need a strengthening, not a weakening of democratic legitimation in Europe." So not only does the euro zone face disaster, the ruling powers are so fragmented it is difficult for them to even present a much-needed unified front to tackle the very difficult problems ahead. This is far from over and continued volatility is to be expected