Florida Mortgage Rate Forecast – August 13, 2010

by Florida's #1 Mortgage Planner on August 13, 2010

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +16bp

Mortgage backed securities are currently off their highs of the day, which raises some concerns.  We are still working with a skewed chart, so predictions are not precise, so bear that in mind as you read this report.  That being said, after adjustments are made, the trend remains intact at this point.

Data today was fairly benign overall with the two biggest reports, Consumer Price Index (CPI) and Retail Sales, coming in essentially inline with expectations.  Overall CPI came in at 0.3%, which was the consensus, and that keeps inflationary fears subdued.  Core CPI was also inline with the consensus at 0.1%.  Chalk one up for MBS prices and low mortgage rates.  Retail Sales came in at 0.4%, just below the consensus of 0.5%.  Take autos out and Retail Sales was 0.2%, inline with expectations.  Chalk another win for MBS prices and low mortgage rates.  Consumer Sentiment was reported at 69.6, which beat expectations of 69.0, and was up from 67.8 last month, so MBS prices and low mortgage rates take a loss on this one.  Overall, the score was essentially tied, though slightly favoring MBS prices and low mortgage rates.

What does this mean for Florida Mortgage Rates?  Mortgage rates are holding fairly steady today and may be getting ready to push lower.  There are some concerns but overall the outlook remains favorable for steady or improving mortgage rates. 

Note:  Don’t forget to check out the next Mortgage Market Weekly radio show on BlogTalkRadio, where we discuss the future of mortgage rates and some other timely topics.  The show typically “airs” Monday at 11:00 Eastern, but occasionally is forced to be rescheduled due to conflicts.  Check the show’s main page for scheduled broadcasts and the chance to hear past broadcasts.

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