Mortgage rates were little changed Wednesday as mortgage-backed securities markets gave back yesterday afternoon’s gains. Last night, President Obama called for a five-year budget freeze on non-security discretionary spending, but investors expressed doubt that the move would have a significant impact on the deficit. Separately, the non-partisan Congressional Budget Office reported that the 2011 deficit will likely top $1.5 trillion. In economic news, December New Home Sales rose 18% to the highest level in 8 months, beating forecast. The Mortgage Bankers Association weekly purchase activity index fell 9%, while the refinancing activity index declined 15%, to the lowest level since last January. Average reported 30-year fixed rates rose to 4.80%, not including fees. Results from today’s 5-year Treasury auction will be released at 1:00 PM. Today’s FOMC meeting of the Fed will wrap up at about 2:15 PM. Investors are expecting an upgrade on the performance of the economy, but no change in the direction of monetary policy.