December 22nd Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) closed up 6 basis points today at 102.31 having remained above the strong double support levels offered by the 25 and 50 day moving averages.   MBS bonds were up and down a bit today in light trading and remained in a tight trading range.  The Fed continues to buy mortgage backed securities with the proceeds from maturing investments.  We are not seeing the wild swings that can sometimes occur when there is light trading.  The 30 year conforming rate remained at 3.875% today.