Financial Update by Maurice Soussé

We had a tremendous day in the markets yesterday with one of the largest moves in history on the 10 year treasury bills (which move mortgage rates). Here is a wrap up of yesterday’s events:

The Fed statement provided liftoff for most Stocks, Bonds and Oil after 2:00pm ET. The rather dovish statement sent equity prices soaring, Bond prices higher and yields lower. The 3% Fannie Mae 30-yr coupon rose by 75bp to end the session at 102.12. The Dow rose by 227.11 points or 1.27% to 18,076.19, the S&P 500 gained 25.14 points or 1.21% to 2,099.42, while the Nasdaq was up 45.39 points or .92% to end the session at 4,982.82. Oil closed at $44.66/barrel up $1.20 after hitting $42 earlier in the session.

3:26 PM ET – Stocks, Oil higher. Bond prices higher, yields lower.

3:14 PM ET – MBS gains accelerate, 3% up 88bp. Dow up 225 points after being down 124 points just before the release of the Fed statement. 10-yr T Note yield now 1.90%, down from 2.04% right before the release.

2:43 PM ET – The Fed will continue to reinvest proceeds from principal payments in MBS back into purchasing MBS.

2:33 PM ET – Yellen say “patient” removal doesn’t mean impatient.

2:32 PM ET – Yellen says Fed will remain highly accommodative.

2:12 PM ET – Fed cuts inflation outlook.

2:11 PM ET – The 10-yr T Note yield was at 2.04%, now at 1.98%.

2:10 PM ET – The Dow was down 124 points before the statement, now up 106 points.

2:08 PM ET – MBS surge higher on the rather dovish Fed statement, downgrade to growth.

2:02 PM ET – Fed reduces growth outlook.

2:01 PM ET – Fed – rate hike unlikely in April.

2:01 PM ET – Fed – economic growth has moderated somewhat. Now leans to dovish side on economy.

2:00 PM ET – Fed drops patient from statement. But will monitor economic data for rate hike.

1:52 PM ET – The yield on the 10-yr T Note at 2.04%, Dow down 124 points. 3% Fannie Mae 30-yr at 101.41, up 3bp ahead of the Fed.

1:42 PM ET – Stock losses accelerate ahead of the Fed.

1:37 PM ET – Tick, tick, tick…markets await the Fed statement release at 2pm.

12:11 PM ET – Stocks fall with eyes on the Fed.

11:13 AM ET – MBS trade in a tight range ahead of the 2pm ET release of the Fed statement.

9:40 AM ET – Stocks open lower. Dow down 75 points.

8:12 AM ET – The refinance index decreased 5% and is now at the lowest level since October 2014. Purchase index -2%.

8:09 AM ET – Oil continues to move lower – WTI down $1.16 to $42.30/barrel.

8:09 AM ET – 10-yr T Note yield at 2.02%.

8:07 AM ET – The Fed statement will be released at 2pm ET with Fed Chair Yellen’s press conference immediately following.

8:01 AM ET – Fed set to lose “patient” rate vow as it eyes world growth as it gets set to lay the groundwork for its first interest rate hike in nearly a decade.

You can see that within a few hours the markets were jubilant on the remarks of Chairman Yellen. Interest rates dropped yesterday and are holding strong this morning. Take a look at the jumbo 30 year fixed rates. Back in the 3’s!!!

With this great news I wanted to get you the rates earlier than usual. The comedian Tracy Morgan said “Bad new travels at the speed of light; good news travels like molasses.” I wanted to make sure you received this great news at the speed of light!