August 30th Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed up 34 basis points today at 100.94 having remained in a large open area between support and resistance.  Word from the Fed indicates that they were concerned enough about the downgrading of our S&P rating to meet about the situation in early August.  They also agree that the market has deteriorated sufficiently to require a full review of options for action.  While Chicago's Fed President Evans is in favor of more "accommodation" MInnesota's Fed President is not.  The Fed's Setember meeeting could be a dusey.