Industry News
Mortgage Industry News
Fed To End MBS Purchase Program Tomorrow
03/30/2010
The Fed is scheduled to end the $1.25T MBS purchase program tomorrow. Fannie and Freddie predict that the effect will not be major: a rise of about 25bps in mortgage rates over the next 3 months, or around $30/month more on a $250,000 mortgage. ADP is scheduled for tomorrow, projected at +40K; Nonfarm payrolls is set for release on Friday, consensus is +184K. Right now, the futures market is pricing in a 74% chance that the Fed keeps rates at .25% through August 10th, 2010. Currently, the Ten Year yield is at 3.87% (3.87% yesterday) and the 2-10 yield spread is at 283bps, flat to yesterday morning.
