January 27th Mortgage Market Wrap-up

MOrtgage backed securities (MBS) closed down 19 basis points today and are still wedged in between support offered by the 200 day moving average and the double resistance at the 100 and 50 day moving averages.  MBS bonds were trading up this morning but turned downward when the Fed released its statement after this month's meeting.  Because the Fed did not fulfill traders' dreams of an extension of the MBS purchase program there was a slight selloff after 2:15.