Last week was a good one for mortgages. It started off with the news that Fannie Mae was rescinding its April 4 clean-up call and would not exercise any further cleanup calls.

The second piece of good news was Chairman Greenspan's dovish testimony before the Joint Economic Committee. He noted that the "...Federal Reserve should have ample opportunity to adjust policy to keep inflation pressures contained once sustained, solid, economic expansion is in view." Based on his comments, Lehman Brothers economists believe the first Fed tightening will not be until the Sept. 24 meeting.

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