Daily Market Update 6/23/10

Rates drifted lower Wednesday ahead to this afternoon's Fed announcement. The Federal Open Market Committee (FOMC) is meeting today to discuss monetary policy. No rate changes are expected. In economic news, New Home Sales fell a record 33% in May to 300,000 annual units, far below forecast. Expiring homebuyer tax credits were blamed for the steep decline. The Mortgage Bankers Association weekly purchase activity index fell 1%, while the refinancing activity index decreased by 7% in spite of the year's lowest rates. Average reported rates for the week fell to 4.75% for 30-year fixed mortgages.