Florida Mortgage Rate Forecast – July 29, 2010

by Florida's #1 Mortgage Planner on July 29, 2010

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds:  +12bp

Mortgage backed securities mounted a pretty good rally as the 5-year Treasury Note Auction went well and the Beige Book was released.  All that comes in continues to favor the “flight to safety” and that bodes well for continued low mortgage rates.  However, MBS prices ended they day beaten back to just below resistance.

Starting today off, MBS prices were down and looked like they were to remain trapped in a sideways pattern, but things change in this market, and sometimes very quickly.  Currently MBS prices are pushing higher and are back above resistance.  If they can hold above resistance, we will be setting new recent record low mortgage rates.  Jobless Claims came in at 457K, pretty much in line with expectations of 460K, with its 4-week moving average dipping a bit to 452.5K.   Still to come this afternoon is the last of the Treasury Auctions, the 7-year T-Note, due out at 1:00.  If this auction follows the others with decent results, MBS Prices could hold their ground, even make up some more.  The caution right now is that the resistance levels they are currently breaking above have managed to hold them back six times already.

What does this mean for Florida Mortgage Rates?  Mortgage rates continue to hold steady, if not edge lower, and the outlook continues to be favorable for low mortgage rates.  If things change, we will post accordingly, but enjoy the ride for now.

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