Mortgage Rates Unchanged Waiting on the Directions of the Fed's Statement

Mortgage Rates still remain unchanged, even with the Mortgage-Backed Securities (MBS) bouncing all over the place today.  Yesterday we saw a sell off of the securities after several days of positive movement, but as I have mentioned now for over a week – all the speculation is now at this fork in the road – what will the FOMC (Fed’s) do tomorrow with their announcement?  All the data that came in today allowed the bonds to rebound after yesterday's midday slump, buoyed by a weaker than expected reading from the December Durable Goods, falling by 4.3%, well below the +2.1% expected. 

The Dow rose by over 90 points after falling for five straight days.  The volumes in the bond market were a bit above average today, but the weak Durables spurred on the safe haven buying.  Tomorrow’s conclusion of the  FOMC (Fed’s) meeting is likely going to keep some lid on how low rates may fall as we hope this push subsides from present levels.  It is dependent on the equity markets if the key indexes turn and rally back, with the Fed expected to taper the 10 yr and MBSs will retreat from the present lows. This fork in the road will take one direction or another.

With the current market, 4.5% remains the most prevalently quoted conforming 30yr fixed rate for ideal scenarios.  With today's move higher and close near the highs, we have room to still cautiously float into tomorrow's big event.

In summary, yesterday I had suggested to float, but changed it later in the day to caution.  I am still holding that advice till after the announcement.  But we need to make sure we have a quick finger on the lock button if the Fed’s continue their push without any retreat.

If there is anything I can do to assist you on your financing, please give me a call at 314-744-7806, or visit me on my website at www.CallTheMoneyMan.com.