August 21st Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) closed even today at 102.31 having experienced a wild ride during the day and having flirted with disaster.  Early in the day MBS bonds had fallen 20 basis points below the all-important support level offered by the 100 day moving average.  Things looked very poor indeed for the outlook of bonds and interest rates.  As the day moved on, however, stocks began to lose their luster and bonds came inching back.  The 30 year conforming rate closed the day at 3.625%.