May 30th Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) closed up just 3 points today at 100.97 having closed just 9 basis points above support offered by the 100.88 level which it reached on Tuesday.  After Friday's huge selloff, MBBS bonds have made a modest recovery.  Interest rates have risen across the board as a result.  The 30 year conforming rate was at 4.0% today, while the high balance conforming for Fairfield County was at 4.25%.  A better deal would be to go straight to the 30 year jumbo which qualified buyers could find at 4.0% today.  The jumbo ARMs remain attractive as well.