Daily Market Update 1/27/10

Mortgage rates held steady Wednesday morning. The Fed wraps up a two day FOMC meeting this afternoon at 2:15. No change in rates is expected, but investors will be watching closely for clues about when the Fed will begin to tighten monetary policy and end its mortgage-backed securities purchase program. Some analysts are concerned that Fed policy will be affected by Chairman Ben Bernanke’s on-going reconfirmation hearings in the Senate. The Federal Reserve is designed to be independent and immune from political pressure. In economic news, New Home Sales fell unexpectedly to a 9-month low. Sales for all of 2009 declined 23% to the lowest level since records began in 1963. There will be a 5-year Treasury auction at 1:00 PM.

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