Today the Fed Policy Statement said rates will stay low "for an extended period" and the Feds MBS purchase program will end on March 31st. Bad news for MBS because this gives the green light to stock traders, thus there will be money leaving the bonds moving into stocks. This will help the Carry Trade for a while. MBS are currently trading down over 12 bps. across the board.
The end of the Fed's MBS programs means there in no more government influence in the pricing of mortgage loans. Before the Fed decided the purchase MBS rates were in the low to mid 6's. Expect them to be there shortly. Could be the end of a great ride for super low rates. Lock in your rate as soon as you can. Rate are going up.
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