March 29th Mortgage Market Wrap-up 7

Mortgage backed securities (MBS) closed up 41 basis points today at 104.72 having broken through tough double resistance offered by the 25 and 50 day moving averages and closed well above them.  Janet Yellen's comments about "proceeding cautiously" with rate hikes set a "dovish" tone which warmed the hearts of both equity and fix rate traders.  I recommend floating cautiously with one finger on the locking trigger.  The 30 year may reach 3.75% again tomorrow.