June 23rd Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed up 38 basis points today at 101.25 having risen to touch resistance at 101.34 before bouncing back down.  Another week of new unemployment claims over 400,000 was just the bad news bond traders needed in order to sent MBS bonds higher once again.  It seems banks have drawn a line around rates, however, as the 30 year rate did not improve below the 4.375% level.  MBS bonds closed just about at the high for the year.