September 24th Mortgaege Market Wrap-up 4

Mortgage backed securities (MBS) closed up 25 basis points today at 104.50 having sustained yesterday's gains and solidified their position above the 100 days moving average.  This was a strong day indeed for a strengthened 4.0% coupon bond that marked it best close since June.  Although a nice move has taken place since May's rapid increases in ineterest rates, the rates themselves have not moved too much.  The 30 year conforming rate still struggled to fall much below 4.50%.