BREAKING- The conclusion of the 2 day Fed meeting today brought an announcement that the Fed would be aggressively buying both Treasuries and Mortgage-Backed securities in an effort to deliberately drive down mortgage rates. The effect is already being felt in the Treasury market where prices have soared and yields plummeted by the biggest margin since the market crash of 1987. With half an hour left of trading on the day, the yield on the 10 year treasury has dropped nearly 1/2 point (16%) on the day to 2.55%. How much of this translates directly to a 30 year mortgage rate is hard to judge, but expect a big drop in mortgage rates over the coming days.
Treasuries Skyrocket On Fed Announcement (Marketwatch)