December 12th Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) closed down 22 basis points today at 104.69 having fallen farther below formidable double resistance offered by the 25 and 50 day moving averages.  The Fed announced today that they would be buying $48 billion in long term Treasuries each month in addition to the $40 billion MBS bonds they having been buying each month.  These purchases of long term fixed paper will serve to keep mortgage rates low for the near future.  The 30 year was still available at 3.375% today.  That may change tomorrow.