Rates moved higher Wednesday ahead of this afternoon’s Fed statement. The Federal Open Market Committee wraps up a two day meeting to discuss monetary policy today at 2:15 PM. Investors will be looking for indications of how much longer the Fed will continue to purchase Treasurys and mortgage-backed securities (MBS). Any change from the statement in December could have a large impact on MBS prices. In economic news, fourth quarter GDP declined unexpectedly by 0.1%, far below forecast. The weakness came mostly from government spending and inventories, while both business and consumer spending were relatively strong. Separately, payroll firm ADP projected private sector job growth of 192,000 in December, a bit higher than expected. The Mortgage Bankers Association weekly purchase activity index fell by 1.8%, while the refinancing activity index declined by 10.2%. Average reported 30-year fixed rates rose to 3.67%, not including fees. Results from today’s 7-year Treasury auction will be released at 1:00 PM.