Thanks to bad news, stocks are higher. As backwards as that sounds, it does appear to be the approach that investors are taking. The 2nd revision of 1st quarter GDP was slightly lower at 2.4%, Initial Jobless Claims were higher than expected, and Pending Home Sales missed as well. The overall negative tone of the day leads investors to believe that the Fed will not taper off anytime soon. Mortgage bonds had a positive day yesterday, but that needs to be kept in the context of the full month of May. We have seen the lowest and the highest interest rates of the year, all within the same month. It may be an extreme knee jerk reaction to Ben Bernanke’s recent comments, as the housing market recovery could be snuffed out quickly if rates move up too much faster. That said, interest rates are still in the 4% range, which is still a great opportunity to save money. We will suggest a locking bias on short term transactions.