Mortgage Corps Stock Hit: Bonds Unchanged
On a day that saw a Fed rate hike and a disappointing earnings report from Countrywide Financial, the big lenders saw their stocks move down. "With underlying inflation expected to be relatively low, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured" the FOMC statement assured.
Countrywide, off earlier lows, slipped 5.6% by the close, Fannie Mae was down 2.7% and Freddie Mac ended the session down 1.5%. January was not good to the shareholders of the GSE's and higher interest rates will have an unclear effect due to the massive derivatives positions common among lenders. The 10 Year US Treasury Bond was unchanged.
The FOMC statement is here.