December 26th Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) closed up 9 basis points today at 104.69 having come within 2 and 4 basis points of the 50 and 25 day moving averages respectively during the day prior to coming to a close slightly below.  At this time of year many traders are taking time off to be with their families.  With light trading volume, unpredictable market reactions can occur.  Today, however, there was little volatility.  If MBS bonds are able to break through the double resistance, we could see improved pricing.  The 30 year remained at 3.375% today.