The Dove Rears its Head

The continuation of accommodative policy from the Fed and generally dovish tone in Ms. Yellen’s prepared statement yesterday inspired a rally in the mortgage market which ratcheted prices up a notch and is keeping rates stable this morning.  Even the news out of Philadelphia that the manufacturing sector is posting positive numbers for the first time since last June is not reversing yesterday’s gains.  And now that I read what I just wrote and realize how depressing it sounds, I am not surprised.

Happy St. Patrick’s Day!