George Jetson said it best: "Get me off this crazy thing!" The recent dramatic "ups and downs" in MBS (mortgage backed security) pricing probably have many of you singing the same tune. Today just adds to the drama. The Case Shiller Home Price Index fell to 16.9% down year over year. Although this report doesn't tend to have a major impact on rates, it's never a positive thing when the asset (homes) that secures the other asset (mortgage debt) that backs MBS, is declining in value. Merrill Lynch

We've had a strong bounce of the worst rate levels of the year owing to a worse than expected Jobless Claims Report and the Reassurance provided by the rapid enactment of the new Housing Bill. Despite morning weakness, yesterday ended with some decent gains, and we have only added to them this morning. (remember that "gains" refer to gains in the MBS market which translates to better rates. The Numbers The very best 30 year fixed rates are pushing down to the 6.25-6.375 range. The News Jobless Claims

Yesterday saw a massive sell-off in Mortgage Backed Securities (MBS), which are the bonds that directly govern mortgage pricing. In the past, we have discussed "flight to quality" (FTQ) buying. This occurs when, shaken by market uncertainty, investors pursue fixed income investments in order to lock in a guaranteed return on their investment. The thought is that tying up money to earn a 4% rate of return on a bond is a better risk than hoping for an 8% return in the stock market. When all is operating

Earlier in the week, concerns over the solvency of Fannie Mae and Freddie Mac drove the Mortgage Market into somewhat of a depression. A day later a key government official stated that they were sufficiently capitalized. This helped Mortgage Backed Securities to improve greatly, and they rode that wave through the next day. But this morning a different government official said that the two were basically insolvent. This hasn't hurt mortgages nearly as much as it did earlier in the week. In fact,

So far this week has not been a good one for MBS (Mortgage Backed Securities). Traders have been more apt to place their money in the virtually risk-free US Treasuries as our market convulses. The phenomenon of buying bonds as stocks are falling is referred to by some as "Flight To Quality" (FTQ) buying. Since the FTQ impetus is the lowest stock prices of the year, and since this impetus took shape at the same time that a key inflation report showed moderation, traders did not mind sacrificing the