With 1999 touted as a record year for housing turnover, a general consensus in the market that the Federal Reserve will not touch interest rates for the rest of the year, and decent technicals for mortgage-backed securities, mortgage players seemed upbeat last week.

"Mortgages are doing well, the Fed announcement was expected, and nothing out of the ordinary shook the market," commented one MBS trader. "Extension risk should not be a major worry, the prepayments are going to continue to be fast, though a bit slower than the summer.

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