Locking Stance: CAUTIOUSLY FLOATING Mortgage Bonds: 0bp
What an exciting Monday as this week marked the first Mortgage Market Weekly that had a guest. Larry Bettag of Mortgage Mythbusters joined today and the show seemed to flow very well as we not only discussed where mortgage rates are headed but also hit on some impacts from the financial reform bill (Dodd-Frank Bill). You can catch the replay on BlogTalkRadio and please feel free to join us next week as we would love to generate even more dialogue on the issues.
Mortgage backed securities have been bouncing back and forth across the flat line today and appear to be going nowhere. In all likelihood, that will continue today as traders are focusing on tomorrow’s FOMC Meeting Announcement, especially in light of no data plays today, just news and short-term Treasury Auctions. The Treasury auctions were met with reduced demand this morning, though only slightly, as bid/cover ratios dipped just below 4.00. Not a bad auction, just not as good as we have been seeing and that does elevate some concerns as we begin longer-term Treasury Auctions tomorrow. That leaves the remainder of the day rather quiet and unless something big happens we will continue to hold fairly steady throughout the day.
What does this mean for Florida Mortgage Rates? Mortgage rates are holding steady and will likely continue to do so. The short-term outlook does allow for a corrective move higher, but the overall trend remains favoring steady to improving mortgage rates.