December 15th Mortgage Market Wrap-up

MBS prices are down -7/32 (FNMA 30-yr 4.5 at 100.62), down 5/32 from the initial price level. It was a quiet session. Industrial Production and the Empire State index came in close to expectations. The Dow fell 66 points. Tomorrow, CPI and Housing Starts will be released at 8:30 et. The Fed announcement will take place at 2:15 et. Investors have priced in a 50 basis point rate cut, but it will be the statement which will likely determine the reaction. It may be a volatile day.