Market Analysis

Yesterday's Federal Reserve announcement that they would sell $400 billion in short term US Treasury debt and purchase $400 billion in longer term notes and bonds was expected.  What was not expected was that the Fed announced they would also be buying some mortgage-backed securities (MBS).  That news buoyed the mortgage market.  What is interesting is that the impact of the Fed announcment moved 30 yr rates down .125% but 15 yr rates are holding at 3.25%.

In economic news, Initial Jobless Claims for the week ended 9/17 came in at 423,000 vs expectations for a 418,000 figure.  The Conference Board's August Leading Indicators came in up .3% vs expectations for a .1% increase.