January 10th Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) closed down 19 basis points today at 104.38 having fallen once again below the support of the 100 day moving average.  That support level, which was just surpassed yesterday, will now become resistance.  Fortunately MBS bonds are still above the technically important 104.06 level.  Falling below that level could cause a momentum shift in the market.  Today a 30 year bond auction garnered an A- rating preventing a larger slide.  The 30 year fixed rate remained at 3.50% today.