The small selloff in mortgage backed securities has been erased and the signs look positive for rates to get better.  Today we rebounded above the floor us support that you see on the graph.  I have also drawn a trough on the graph that you can see a steady increase in MBS since the beginning of the year.  Signs show rates could get better, but there has been a lot of improvement this year so don’t be too greedy trying for the extra 1/8^th of a point off you rate when they are better by at least a half point this year!

SZ