October 17th Mortgage Market Wrap-up 2

Mortgage backed securities (MBS) closed up to 50 basis points today at 101.22 having drifted down to test support offered by the low of 9/16 before bouncing upward toward the 50 day moving average.  MBS bonds closed near their highs of the day which is typically a good sign for the next day's trading.  Markets returned to the safe haven trade after a week off losses in fixed income markets.  The result was that interest rates, which were once all the way down ot 3.75% for a few hours are now back at 4.25% for 30 year fixed.