Last week was a very nice week for mortgage rates. The economic data was rather mixed, some pointing toward economic growth, while others hinting at a double dip recession. Despite this mixed data, the prices of mortgage backed securities approached the highest levels of the year bringing mortgage rates to 5 month lows. After hitting the highs of the year early on Friday, MBS did come under some selling pressure which lead to many leaders repricing for the worse Friday afternoon as the losses held til close. There is a possibility that we are beginning to see a shift in economic outlook away from the quick V shaped recovery toward a more painful W(double dip) shaped recovery. If this holds true, it could cause stocks to move lower which would benefit MBS and treasuries. ...