Florida Mortgage Rates – Afternoon Report

by Florida's #1 Mortgage Planner on July 28, 2009

Locking Stance: LOCKING    Mortgage Bonds: +12bp

What a whipsaw day we are seeing, including a brief rally that pierced through the double layer of resistance I talked about earlier and almost made me change my stance to a floating one, almost.  I just couldn’t rush to change my stance with all of the negative indications showing in the charts.

With the dismal Consumer Confidence data this morning, mortgage backed securities found strength and as stocks fell, mortgage bonds took off.  Unfortunately, the Treasury Auctions I mentioned earlier did not go very well and MBS pricing has reversed course and are now even lower than my prior report, but at least are bouncing off the lows.  The fact is, the 4-week and the 52-week T-Bill auctions actually faired well, but the 2-year T-Note came in with just a bid/cover of 2.75 and yields coming in slightly higher.  Traders are now concerned about tomorrow’s 5-year T-Note auction and Thursday’s 7-year T-Note auction.

What does this mean for Florida Mortgage Rates?  As I said earlier, it does not appear that mortgage rates will do much else but rise for the foreseeable future.

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