Florida Mortgage Rate Forecast – July 23, 2010

by Florida's #1 Mortgage Planner on July 23, 2010

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds: 0bp

It is a beautiful day down here in South Florida as Tropical Storm Bonnie works here way by Miami.  Off and on rain showers and occasional breeze will be the norm for today.  Why do I bring this up?  Because the markets right now are a lot like a tropical storm, if not a hurricane as the “winds” blow back and forth and things go back in forth between “rainy” (bearish) and sunny (bullish).  All in all, as the storm spins around it can make anyone dizzy, especially if they do not know how to get through it.  As always, lock if you cannot stomach risk and then you won’t get “sick”.

OK, data is non-existent today and that leaves technical factors and stock driving the markets.  Of course, news is a key player as well and even Tropical Storm Bonnie is making some waves.  Mortgage backed securities are hitting up against resistance, actually closing just above it two days ago and began to fall back yesterday.  Will they go lower?  They started to today.  In fact, they were down 37 basis points no too long ago, which was at their 10-day moving average and they bounced back to flat now.  That shows that they will likely hold steady if not try to bring even lower mortgage rates, though this “storm” could bring change and quickly.  As we have mentioned in recent reports, so long as MBS prices hold above their 10-day moving average, we see no need to change stances.

What does this mean for Florida Mortgage Rates?  Florida mortgage rates will likely hold steady and may yet move lower, so don’t rule out new record low mortgage rates.  However, things can change and do so quickly, so we must remain cautious.

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