Tracking Mortgage Backed Securities Movement Recently....

The enclosed chart includes 4.0 and 4.5 MBS (mortgage backed securities) closing prices for the past 6-weeks. I don't recall ever seeing market deterioration of this magnitude in such a short period of time. It's just amazing as there's really nothing to support this movement. Needless to say, the ONLY THING that's been helping our economy is the mortgage industry. NOW....the feds and free market are stopping that. Do you know that the end of every recession was led by the surge of the mortgage and, invariably, real estate industry? The government's going to have to act quickly otherwise we'll quickly be back to where we were back in October, November and December of last year.

Look at the price swing. The difference in price between the high/low during that period is:

4.0 Coupon Deteriorated 6.427 points

4.5 Coupon Deteriorated 4.828 points