August 28th Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) closed up 6 basis points today at 103.31 having continued their sustained winning streak since their perilous plummet that began in late July.  MBS bonds have stabilized nicely causing interest rates to re-enter that comfortable zone in the 3.50% range to which we had all become accustomed.  The $35 billion auction of two year Treasuries, despite their miniscule yields, garnered a "B" rating.  Home buyers were able to find 3.50% 30 year fixed rates once again today.