Mortgage Bonds are up about 15 basis points after dropping earlier this morning.  We've seen a decent recovery in mortgage bonds, stocks are holding steady, and all eyes are on Congressional legislation that opens up the Fannie Mae and Freddie Mac to greater liquidity and Federal oversight.  We'll be posting on this separately as the details are finalized.

Could be an interesting day with Congress at work, a $31 Billion dollar T-Note auction, and the Fed's Beige Book (an economical snapshot report) all hitting the newswires at various times this afternoon.

Chicago mortgage rates are slightly improved on the day as are FHA rates.