Mortgage Bonds continue to hover near the upper end of short term trading range. Carefully floating is recommended. Weekly Initial Jobless Claims drop 26K to 255K, below the 279K expected. The 255K jobless claims lowest since 1973. Despite the 42-yr low in jobless claims, S&P futures near unchanged after a round of mixed earnings reports. Freddie Mac reports the average fixed rate 30-year conventional mortgage at 4.04% with 0.6 in points/fees. Fannie Mae forecasts total home sales in 2015 to hit an eight-year high of 5.75 from its July report, up from the 5.65 million forecasted in June.