Bonds are weaker this morning with the 10-year trading at 3.395% after dropping to as low as 3.31% Tuesday afternoon. New home sales for the month of December rose 17.5% month over month as many homebuyers jumped off the fence as they saw interest rates increasing. Almost all of the increase in home sales came in the West region. For all of 2010, new home sales fell 14% to 321,000 versus 2009 levels, and remain at depressed levels.
The Fed will end its two-day FOMC meeting today and makes its official rate announcement at 2:15 pm ET. All eyes will be on the details of the text today to see any nuances in the wording from the December statement given the four new voting members this year.
The markets have been unfazed by the President’s State of the Union address last night given that it was largely as-expected and lacking in details. Stocks are flat, Treasuries have given back much of Tuesday’s improvement, and mortgage pricing is about where it was Tuesday morning.
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