fed-building1No place to hide in the market today. 

Mortgage backs down 31/32’s, 10-year note down 1 and 7/8th points, and the Dow off 228. Traders refer to this kind of a day as ‘blood in the street.”  Today, Mortgage Market Guide’s Barry Habib makes a great point about the Fed’s involvement in purchasing MBS and how it may do little to bring back the 4.50% note rate that many borrowers are lusting for. 

Along with this, the Fed was indeed in the market today, buying mostly 5.50% coupon.  This purchase has done nothing to help lower interest rates. 

New York Fed purchases $16.8 billion in agency mortgage-backed securities

Let’s hope for a better day tomorrow.