The roller coaster theme continued yesterday but in reverse from the prior two days. If you recall, on both Tuesday and Wednesday mortgage backed securities rallied early on but gave back all the gains following disappointing treasury auctions of 2 and 5 year notes. Yesterday, MBS moved lower in the morning but following a successful auction of 7 year notes they managed an impressive rally closing higher on the day and at the highest levels of the week. A few lenders repriced for the worse in the morning as MBS moved lower ahead of the auction; however, after MBS moved higher and held onto the gains into close most lenders repriced again but this time for the better. To remind readers, mortgage rates are set by the trading of mortgage backed securities (MBS) in the secondary market. As investors buy MBS, the price of the security moves higher which lowers mortgage rates but as investors sell MBS, the price moves lower to attract buyers which increases mortgage rates. ...