Florida Mortgage Rate Forecast – July 20, 2010

by Florida's #1 Mortgage Planner on July 20, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds:  +22bp

My apologies for not getting off a mortgage rate forecast yesterday, but it was one of those times I had to fly all day and without adequate breaks between flights to shoot off a post.  Overall, I would not likely have changed my stance as yesterday’s move was more of a correction as I had mentioned would be needed.  I am also going to omit this week’s weekly update at Lenderama, though I may do one for ActiveRain still.  I will be doing my weekly radio show, only it will be today at 1:00p versus the normal Monday at 11:00.  I am still working on getting someone else whom understands the market to fill in for me on posts here and also for ways to ensure there is a broadcast, even if not live, every Monday so you have the best information available to you to make decisions.

OK, I am not going to dwell too much on yesterday, but if you were watching the rate alert services, they panicked and had you locking, which is OK if you were about to close anyway, and something you need to be doing if you cannot stomach risk.  Yesterday, mortgage backed securities plummeted 35 basis points and today’s move is not covering that fully, which does leave some concerns.  The stock market is currently rebounding from its initial fall today and that is limiting MBS’s ability to rise.  Data that was released yesterday and today continue to point to what I have been stating for a while, the fact that the housing market is far from recovering and the data points to its continued weakness after the termination of tax credits.  The short-term Treasury Auctions continue to go well, so demand for “safety” investments, at least on the short-term scale, remains robust.  This week does not hold a lot of data and therefore technicals and stocks are in the driver’s seat, which points to most likely steady or even improving mortgage rates from here at this point.

What does this mean fro Florida Mortgage Rates?  Florida mortgage rates are rebounding from yesterday’s edge higher.  The short-term and current long-term outlook remains favorable at the moment for mortgage rates edging back lower or holding fairly steady.  There are some concerns, but the risk/reward ratio still is slightly favoring floating.

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