Florida Mortgage Rates – Afternoon Report

by Florida's #1 Mortgage Planner on August 13, 2009

Locking Stance: LOCKING    Mortgage Bonds: +25bp

Mortgage backed securities have been bouncing back and forth today, still remaining locked around their 50-day moving average. However, the results of the 30-year Treasury Bond were just released and may provide a boost as CNBC’s Rick Santelli gave the results an A-.  That being said, I think any boost may be short-lived based on the chart patterns.

The results of the 30-year Treasury Bond (T-Bond) Auction were released at 1:00 and showed the bid/cover ratio at 2.54 and the yield at 4.541%.   In my opinion, the auction was more like a B- or a C than an A-.  Again, looking at the charts, the 25-day MA is crossing below the 40-day MA at this time, the 50-day MA has been holding for the most part, allowing only brief periods of higher MBS pricing which have yet to break back above the 25-day MA.  With stochastic indications turning negative as well, I do not expect any move higher to be long term sustainable at this time.

What does this mean Florida Mortgage Rates?  We might get a brief period of slightly better pricing as a result of the Treasury Auction, however long term remains most favorable for higher mortgage rates.

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