Mortgages experienced a pretty decent recovery last week, sources said, much of it happening earlier in the week. Near the close of the week, prices for mortgage securities rose, as the volatile stock market calmed down a bit and spreads became more stabilized.

"I think people are ready to go on spring break, with the Easter and Passover holidays," said Art Frank, head of mortgage research at Nomura Securities. "So I think that we're getting the kind of pre-holiday blahs today, and we're probably going to get even more of that tomorrow (Thursday)."

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