U.S. home loan bonds without government backing rallied further, and as financing for investors revives, securities composed of so-called option adjustable-rate mortgages led the gains last week.

Typical prices for the senior-most securities backed by option ARMs, with potentially growing balances, rose 3 cents on the dollar, to 53 cents, last week, bringing the past month's rally to 7 cents, according to Barclays Capital Inc. data.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.