October 30th Mortgage Market Wrap-up

Mortgage backed securities (MBS) closed up 41 basis points today at 101.19 once again closing above the 25 day moving average.  Today was almost an exact reversal of yesterday's MBS selloff.  The core Personal Consumption Expenditure Index (PCE), the Fed's favorite measure of inflation, reported tame numbers while the Dow tumbled ending up losing 249 points on the day.