Last week ended on positive note for mortgage backed securities and mortgage rates. As stock indexes fell, market participants re-allocated portfolios from risky assets to safer investments, resulting in added demand for government AAA rated fixed income securities. The benchmark 10 yr Treasury note moved back under 3.40% and MBS closed near their best levels in the past few weeks. Most lenders repriced for the better. Following the release of today’s data, MBS have moved off their recent price highs but continue to hold near the high side of current trading range which I have used to recommend locking or floating. Considering MBS prices are still close to recent highs it makes more sense to lock rather than float, so I would advise anyone closing within the next week to go ahead and lock to remove all chances of a spike higher in mortgage rates....