Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on July 15, 2009

Locking Stance: LOCKING    Mortgage Bonds: –78bp

Earlier today, I issued a midday report since mortgage backed securities were solidifying their next freefall by breaking below their 200-day moving average and seeking the next floor of support.  That fall in MBS pricing continued, with some rebounds, and mortgage bonds ended the day down 78 basis points, but the good news (if there is any) is that they were off their lows.

Stocks were up today, with the DJIA closing up over 256 points, and that typically draws money from the bond market, which was the case today.  Earnings reports were one of the main driving forces, though data pointed in the direction of a recovering manufacturing sector and possibly even the economy.

On the technical side of things, mortgage backed securities have broken their uptrend and even their sideways pattern they had tried to establish.  While a downtrend may not be fully in place yet, mortgage bonds may have a tough time regaining enough strength to get back above their coveted 200-day moving average, though only time will tell for sure.  With Jobless Claims and, more importantly, the Philadelphia Fed Survey tomorrow, sings of “life” will not be found if the data shown spreads more good news (or at least less bad) about the economy.

What does this mean for Florida Mortgage Rates?  Mortgage rates are on the rise and unless they find some strength, they will continue to do so.

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