No secondary market for Loans.

According to Inside Mortgage Finance, an unbelievable 99% of all new mortgages that were securitized in April went through Fannie Mae, Freddie Mac or Ginnie Mae. That compares to an "Agency" market share of less than 50% one year ago, proving that there's simply no secondary market for non-agency product at this time. That is an amazing statistic. NO secondary market..

Expect more volatility in interest rates this week. Today we have the LEI (index of Leading Economic Indicators), with the PPI report (wholesale inflation) due out tomorrow. Neither of these reports are expected to have a big impact on rates unless they miss expectations by a wide margin.

The most important news item on the calendar this week will be the FOMC Minutes, released on Wednesday. Traders will comb through these minutes to look for confirmation that The Fed has changed its posture toward interest rate cuts going forward.