Florida Mortgage Rate Forecast – July 16, 2010

by Florida's #1 Mortgage Planner on July 16, 2010

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds: +19bp

Mortgage backed securities continue to rally this morning and set new recent record low mortgage rates.  MBS prices are bucking up against resistance so caution must be adhered to, especially in this trading environment.  That being said, the charts are still looking favorable, though a retracement will be coming.  I will set forth all of the details in my BlogTalkRadio show on Monday at 11:00 ET, so be sure to be on as I will be more than happy to field your questions again this week.

Data today continued to be favorable, though Core CPI was a little hotter than expected.  The overall Consumer Price Index (CPI) was reported inline with expectations at –0.1% and that brings the year/year to 1.1%, well within acceptable limits.  Core CPI was reported at 0.2%, just above the 0.1% expected and its year/year sits at 1.0%, also well within acceptable limits and that is why the report is still favorable for MBS price growth.  Adding to that favorability was the fact Consumer Sentiment came in at 66.5, well below the estimates of 75.0.  Once again, we see inflation coming in tame, economic growth weakening and sentiment and confidence falling, all favorable to MBS prices moving higher and bringing lower mortgage rates.

What does this mean for Florida Mortgage Rates?  Mortgage rates are continuing to edge lower, setting new recent record low mortgage rates.  For now, the risk/reward ratio is favorable for floating and will likely do so into next week.  Check out Monday’s radio show for more on what lies ahead.

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