Mortgage rates moved lower Monday as a decline in stock markets boosted mortgage-backed securities (MBS). In economic news, the Chicago Purchasing Managers Index fell to 58.4, below the consensus forecast, to the lowest level since May. U.S. securities firm MF Global Holdings filed Chapter 11 bankruptcy this morning, an apparent casualty of the European sovereign debt crisis. The Federal Reserve begins its two-day FOMC meeting tomorrow. Five of the ten voting members have voiced disagreement with recent Fed policy, three of whom believe the Fed has done too much to ease credit, two who believe the Fed has done too little. A statement will be released by the Fed on Wednesday. MBS markets may remain volatile all week. In addition to the Fed meeting, October’s Employment Report will be released on Friday.