| Last | Change | Percent | |
| S&P Futures | 1970.6 | 5.5 | 0.28% |
| Eurostoxx Index | 3017.4 | -32.6 | -1.07% |
| Oil (WTI) | 54.7 | -1.2 | -2.20% |
| LIBOR | 0.243 | 0.000 | -0.10% |
| US Dollar Index (DXY) | 88.19 | 0.065 | 0.07% |
| 10 Year Govt Bond Yield | 2.08% | 0.02% | |
| Current Coupon Ginnie Mae TBA | 104.8 | 0.0 | |
| Current Coupon Fannie Mae TBA | 104.3 | -0.1 | |
| BankRate 30 Year Fixed Rate Mortgage | 4.04 |
Markets are higher this morning on no real news. Bonds and MBS are down.
Oil continues to fall, with a barrel of West Texas Intermediate now down below $55 a barrel. This is putting pressure on prices. The Consumer Price Index fell .3% in November. Ex food and energy, it rose .1%. Will be interesting to see how the Fed addresses (if at all) falling energy prices in the FOMC statement.
Mortgage Applications fell 3.3% last week. Purchases were down 6.9% while refis were flat.
The FOMC will announce their decision at 2:00 pm. Expect volatility around that time and after as the press conference starts.
"A considerable time." Sounds like a novel. Anyway, that is the phrase that will be the focus of the Fed statement. Will the Fed drop the language that states that rates will remain near zero for a "considerable time?" The new expected buzzword? Patience. Given how far bonds have moved to the upside already I don't know how much a dovish statement will move them further. If anything the risks are on the downside.
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