November 7th Mortgage Market Wrap-up 3

Mortgage backed securities (MBS) were up 56 basis points today at 105.12 having gap opened and closed above support offered by the 25 day moving average.  A huge sell-off in equities created a large post election rally in MBS bonds and Treasuries today.  Fears that the two houses of congress, each led by a different party, will never be able to negotiate a settlement to prevent the fiscal cliff, forced money out of equities today.  The 30 year fixed rate was available at 3.375% today.