July 17th Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) closed up 31 basis points today at 101.09 having broken through two levels of resistance prior to falling 10 basis points below the second one.  Fed Chief Ben Bernanke's dovish, more fully explanatory comments today were both stock and bond friendly.  He stated that he would not end QE3 unless the economy improved to his satisfaction.  He went on as far as to say that if there were a setback that he would actually increase the level of bonds he would buy.  This long term commitment to the program placated investors.  The 30 year fixed was available at 4.50% today.