FOMC Meeting Summary
Yesterday’s FOMC meeting was a bit of a disappointment for investors. However, while the Fed appeared pessimistic about the global economy, the US market seems to still be moving in a positive direction.
The weekly MBA mortgage applications revealed a drop in purchases from 8.3% last week to 8.2%, however although there was a downfall if applications, purchase numbers are still coming up positive. Refinance applications came in better, rising up 9.3% on top of the 15.3% gain from last week. This increase is due to the continual low mortgage rates.
Treasury is auctioning $13B of 30 year bonds at 1pm Eastern today. Also, keep your eye on the Philadelphia Fed Index report coming out tomorrow.
Other results from yesterday:
Fed funds unchanged at .25%
Repeats statement of ‘exceptionally low’ rates through at least mid-2013
Fed expects ‘moderate pace’ of growth in coming quarters
Fed to keep reinvesting housing debt into MBS
Fed says unemployment rate to decline ‘only gradually’