Daily Market Update 1/7/09

Mortgage rates held steady Wednesday after two days of solid price gains in mortgage-backed securities. The conventional 30-year fixed rate is again approaching 5%, a level not seen since the early 1960’s. Yesterday’s release of minutes from the December 16 FOMC meeting showed broad support for the Federal Funds rate cut to 0.00% to 0.25% last month. Fed officials expressed concern about the risk that the current economic slowdown will be deeper and last longer than originally forecast. This morning, the ADP estimate for Friday’s Employment Report predicted larger than expected job losses in December. Stocks moved lower.

Leave a Reply

Your email address will not be published.

Back to top