January 5th Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed up 50 basis points at 100.59 today just 13 basis points below resistance at the 200 day moving average and well above support.  After sliding for more than a  month, MBS bonds have finally picked up some steam.  Stocks faltered early in the day and money starting flowing into bonds. November pending home sales fell a whopping 16% mostly in reaction to the end of the initial first time home buyer credit.