Mortgages had some relief last week as selling slowed down and buying picked up. It was a heavy data week with the key reports of fourth-quarter GDP, Chicago PMI, construction spending, personal income and outlays, ISM Index and employment. In addition, the Federal Open Market Committee met.

In general, the data reported decent growth in the economy, while the inflation information was encouraging. The FOMC held to the status quo, keeping rates unchanged and remarking that it remains vigilant on inflation. The committee did, however, acknowledge the slight easing in inflation pressures in recent data. After reaching a high of 4.892% at Tuesday's close on the 10-year Treasury - ahead of the data crush - Treasurys had rallied to below 4.80% by midmorning on Thursday. By midday, the 10-year had moved back above 4.80%.

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