Dec 16th 2015 MARKET UPDATE
MBS are down -1/32 (FNMA 30-yr 3.5 at 102.28), around 3/32 higher than yesterday at this time.
It has been a quiet morning ahead of today’s big Fed announcement. The Dow is up 100 points. The highly anticipated Fed statement will be released at 2:00 et. This will be followed by Fed Chair Yellen’s press conference at 2:30 et. If the Fed raises the federal funds rate as widely expected, investors will be looking for guidance about the pace of future rate hikes.
Mixed economic data had little impact this morning. November housing starts jumped 11% from October to an annual rate of 1173K, above the consensus of 1140K, and they were 17% higher than a year ago. Single-family starts rose to the highest level since January 2008. Building permits also exceeded expectations. November industrial production fell 0.6%, worse than the consensus for a decline of just 0.2%.