Daily Market Update 9/19/08

Mortgage rates were little changed Friday as traders turned their focus to the broad relief program announced by the Treasury Department late yesterday. Specific details remain sketchy, but a government entity will be established to acquire underperforming mortgage assets from financial institutions. This will remove troubled assets and replace them with fresh capital for future lending opportunities. Major elements of the plan will require Congressional approval. Mortgage-backed securities have remained volatile in what has proven to be a truly historic week in financial markets. The economic calendar will be light next week with the exception of Durable Good Orders, to be released Thursday.