Economists Forecasts Drop in Home Sales for 2004 - 2004-01-13
Top housing economists forsee the red-hot home sales and construction industry will abate somewhat in 2004, falling slightly from last year's records.

Economists from the five groups said mortgage rates will rise in 2004 to as high as 6.625 percent for a fixed-rate, 30-year loan, dramatically cutting back on refinance activity.
Read the full story at Washington Post

US Treasuries edge higher on outlook for low rates - 2004-01-13
Treasuries wiped out narrow losses and edged slightly higher on Tuesday after Federal Reserve Chairman Alan Greenspan, responding to questions after a lecture, said employment growth would pick up eventually.

Investors who worried that their mortgage-backed securities holdings will prepay faster on falling Treasury yields, have engaged in "convexity" trades, buying securities like lower-coupon MBS, Treasuries, and interest rate swaps to replace faster prepaying MBS.
Read the full story at Forbes