The Dow broke the 18,000 barrier today, something it hasn’t done since December 31 of last year, a span of nearly seven weeks. At the same time, mortgage backed securities seem to be holding relatively steady in spite of the gains on Wall Street. The benchmark 30 year FNMA 3.0 coupon opened dow breaks 18000this morning down -2/32 at 101.26. Mortgage rates have taken some losses over the past week and rose a full 10 basis points.

According to Freddie Mac’s weekly mortgage survey, the 30 year mortgage rate came in at 3.69%, that from 3.59% the week before. That’s quite a jump for one week. The 15 year note fared slightly better, moving up seven basis points to 2.99%. The 1-Yr ARM, which typically moves in the opposite direction of fixed product also saw a rise of 3 bps to 2.42%. Rates for investor properties are approximately 0.25% higher than those for a primary residence.

 The stabilization of oil prices has helped moved interest rates higher, along with some positive moves on the job front. While the January unemployment report saw more jobs created than estimated as well as respectable wage gains, equities are benefiting more than bonds. We’ll get a handle on wholesale inflation next week as the Producer Price Index is released as well as a peek into the future when Leading Indicators are reported on the 19th. There are several more economic reports revealed next week but none should have much of an impact other than PPI and Leading Indicators. With a short month, the unemployment report for February will be released March 6.