May 19th Mortgage Market Wrap-up 5

Mortgage backed securities (MBS) closed down 9 basis points today at 105.19 having fallen just below support offered at the 105.16 before bouncing back slightly above.  An alert to lock was issued during session as bonds fell well below their early highs.  Although we expect rates to remina low for some time, the undeerlying bond is trading perilously close to recent highs.  The 30 year was available at 4.375% today.