The mini-recovery continued today on Wall Street as comments from Fed board member and St. Louis Reserve President James Bullard not only calmed markets but helped the momentum bring Dow back up today although still below the 17000 mark. The Dow finished up 263.17 to 16380.41 with thedow recovers S&P 500 up 24 to 1886.75. Mortgage bonds remained unchanged from Thursday with the FNMA 30 Yr 3.5 coupon holding at 103.21.

Mortgage rates for real estate investors are around 4.00% for the 30 year and 3.75 on the 15 year note. On the economic front, housing is showing continued strength as housing starts rose in September by 6.3 percent to an annualized 1.02M units. Next week will be rather mild as it relates to economic data. Existing home sales set to be released on Tuesday and CPI on Wednesday.

The next FOMC meetings are scheduled for the 28th and 29th of this month with brief comments at the conclusion of the two day meetings. It is then investors are waiting for confirmation QEIII will be officially over. It may very well be but with James Bullard in the background making dovish sounds it might not matter as the overall mood is the Fed can always pump a few more billion in the economy and buy more U.S. Treasuries and mortgage bonds at will. Investors are now convinced any Fed moves to the upside will come later in 2015, possibly in Q4.

We’ll all be waiting for the opening bell on Monday to see if Thursday and Friday were indeed somewhat of a recovery or profit-taking. Overseas investors will get a hint at the opening of European markets prior to Wall Street. The newswires are full of Ebola updates and ISIS and it’s proven to be a rather volatile financial environment although the back and forth slowed significantly toward the end of the week.