April 24th Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed down 19 basis points today at 103.50 having fallen away slightly from their recent acsent toward the highest level of all time.  Stocks bounced back somewhat from yesterday's losses and bonds took the brunt of their gains.  Traders really have their eyes on tomorrow's release of the Fed minutes.  Bond traders are hoping for a hint of the chance of QE3.  Although additionl accommodation is bad for bonds, they usually rally on the promise of it.  The 30 year remained at 3.875% today.