Today's Market Commentary:
RATES IMPROVE ON FED ANNOUNCEMENT

Mortgage interest rates improved this past week as the Fed announced at the conclusion of its FOMC meeting that it would increase its purchases of mortgage backed securities by $750 billion. The Fed had already committed to purchasing $500 billion of mortgage backed securities so the total now stands at $1.25 trillion. The Fed will also purchase $300 billion of long term treasuries over the next six months. Lastly, the Fed will purchase an additional $100 billion in Fannie Mae and Freddie Mac debt.

Economic news this past week was mixed. The February Consumer Price Index (CPI) increased slightly more than expected. The February Producer Price Index (PPI) increased, but not as much as expected. February Housing Starts and Building Permits were stronger than expected. February Industrial Production and Capacity Utilization were slightly weaker than expected.
The Dow Jones Industrial Average is currently at 7,402, up about 180 points on the week. Crude oil futures are currently trading at $51.73 per barrel, up over $5 per barrel on the week. The Dollar is weaker versus both the Euro and Yen on the week.

Next week look toward Monday's Existing Home Sales, Wednesday's Durable Goods Orders and New Home Sales, Thursday's final look at fourth quarter GDP, and Friday's Personal Income and Outlays as potential market moving events.