Mortgage bonds and the stock market are both trading relatively flat today.  There is no major economic news today.  Oil is up slightly to $114-115 range.

A Baron's article today sent Fannie Mae and Freddie Mac shares spiraling even further.  The article stated that the US Treasury will ultimately need to bail them out and that the bailout will wipe out common stockholders.

Conforming rates from Fannie Mae and Freddie Mac are roughly similar to where they were on Friday.

FHA rates are slightly improved.  The IHDA program still has decent rates and the 1% grant is an interesting option.

Perhaps the best program on the market is the City of Chicago Bond Program or City of Chicago Mortgage Program.  This is the program with a 4% grant and very generous underwriting standards in today's market.  This is a first-time homebuyer program and one of the better ones out there.