August 21st Mortgage Market Wrap-up 6

Mortgage backed securities (MBS) closed up 9 basis points today at 104.06 having broken through resistance offered by the 200 day moving average prior to closing just 4 basis points below it.  This was an example of just how powerful technical analysis is in markets.  Despite a horrible day in stocks the historically tough resistance was able to keep bonds, which should have rallied wildly, at bay.  I would advise locking for now unless the 200 day level is broken and the break is sustained.  The 30 year closed at 3.75% today.