January 23rd Mortgage Market Wrap-up

MBS prices are up +6/32 (FNMA 30-yr 4.0 at 100.00), above the initial price level at -2/32, and at the high for the day. First unfavorable and later some favorable repricing took place. MBS prices reached a low of -6/32 before moving higher again. No economic data came out today. The Dow fell 50 points. For the week, MBS prices fell -8/32.

The highlight next week will be Wednesday's Fed meeting. With the fed funds rate close to zero, rate cuts may no longer be an option. The Fed has many other tools at its disposal, though, and the accompanying statement will be highly anticipated. A wide range of economic data will come out next week as well. Gross Domestic Product (GDP) for the fourth quarter will be released on Friday. GDP is the broadest measure of economic activity. Durable Orders, another important indicator of economic activity, is scheduled for Thursday. The Chicago PMI national manufacturing index will come out on Friday. Housing market activity will be revealed in the Existing Home Sales and New Home Sales reports. Consumer Confidence and Consumer Sentiment will round out a busy week.