Daily Market Update 6/24/09

Mortgage rates held steady Wednesday morning, but came under pressure following the Federal Open Market Committee (FOMC) meeting. The Fed indicated its plan for the purchase of Treasurys and mortgage-backed securities (MBS) would remain unchanged. Investors had hoped for an increase in Fed purchases of MBS's to drive down rates. The FOMC said it "expects that inflation will remain subdued for some time". In economic news, May Durable Goods Orders rose 1.8%, far above consensus forecast of -0.5%. New Home Sales fell 0.6%, below expectations. Stocks were mixed. The MBS market will likely remain volatile while investors digest the latest policy decisions by the Fed.