MOrtgage backed securities (MBS) closed up 9 basis points today at 104.09 having made today the highest close ever experienced for mortgage backed securities. Whether this can be sustained and cause additional improvement in mortgage rates, is difficult to forecast as we have never been here before. Also in question is whether banks will price loans any better than the record low 3.75% for 30 year loans. With the underlying Fed rate fixed, lower rates will eat into their margins.
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