Industry News
Mortgage Industry News
Today's Market Color
01/27/2010
Despite lower rates, MBA mortgage applications dropped 10.9% last week. The FOMC decision is due out at 2:15 this afternoon and there is speculation that the Fed may hold firm to the March ending of the $1.25T mortgage-backed securities purchase program. There is a $42B 5yr note auction today. Right now, the futures market is pricing in an 89% chance that the Fed keeps rates somewhere between 0% and .25% through April 28th, 2010. Currently, the Ten Year yield is at 3.603% (3.59% yesterday) and the 2-10 yield spread is at 277bps, flattening 2bps since yesterday morning.
