Market Wrap: Based on our recent volatility we are locking rates between 5.75% to 5.875%. Our benchmark 5.5% FNMA coupon bonds gave back 12bp to close at $100.41 in a bout of turbulent trading having a wide 72bp intraday range. Bonds began the day with a -34bp "knee jerk" reaction to a better than expected Housing report where housing starts jumped to an annual pace of 1,032,000 and building permits rose by 4.9% to 978,000 in April when the market was only expecting 940,000 starts and 912,000 permits. Bonds recovered from most of this negative reaction before the arrival of one of the worst readings in consumer confidence in 28 years. The preliminary University of Michigan/Reuters Consumer Sentiment Index for May was reported at 59.5 and below the consensus of 62.6. Bonds jumped higher on the news even though consumer inflation expectations for the next 12 months rose to 5.2%, their worst level since 1982. Treasury Secretary Henry Paulson then painted a pretty rosy picture for the economy and credit markets when he spoke on the U.S. credit and housing markets at a business forum, in Washington, D.C. Paulson stated the financial markets are recovering nicely from the recent turmoil and that the economy should rebound later in this year. This helped the stock market recover from their lowest levels of the day and put the bond market under pressure. The commodities markets also played a major role in bonds moving lower in the afternoon when crude oil, gold, and the CRB Index rebounded strongly from yesterday's declines. The CRB Index and the bond market often trade in opposite directions to each other as rising commodity prices are inflationary and bonds are extremely sensitive to and hate the prospects of inflation. The stock market was able to finish "mixed" with the Dow Jones Industrial Average losing 5 points to close at 12,986 while the NASDAQ Composite lost 4 points to close at 2,528. The broader S&P 500 Index gained almost 2 points to close at 1,425