Mortgage backed securities and treasuries went on quite a rally yesterday following Ben Bernanke’s first day of testimony on Capitol Hill. After opening to the downside, the fixed income sector started to gain momentum during Mr. Bernanke’s testimony as he gave details on the Fed's expectations for a slow economic recovery. Mr. Bernanke suggested the economy is bottoming out but that it will take some time before stable economic growth is achieved. All lenders did reprice for the better with some passing along multiple price improvements as the rally continued to official close. By day’s end we had several lenders offering 4.875% as the par rate for the best qualified consumers.
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