Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on August 21, 2009

Locking Stance: LOCKING    Mortgage Bonds: –62bp

What a horrible way for mortgage backed securities to end the week, down 62 basis points today as all the strength MBS pricing could muster finally faltered and let loose.  Mortgage bonds today alone, came crashing down, all the way to the bottom of the “squeeze play” I eluded to earlier this week, and are now resting on their 50-day moving average.

The 100-day moving average, the top of the long term downtrend, proved overwhelming yet again and MBS pricing failed miserably as a result.  In yet another dramatic move, though only 62 basis points instead of the typical greater than 100, mortgage bonds fell through their 25-day, 10-day, and 200-day moving averages, finishing the day essentially at their lows and just 3 basis points above their 50-day moving average.  While we may get a bounce back next week, this is certainly not a good sign for the future of mortgage rates.

What does this mean for Florida Mortgage Rates?  The long term outlook remains favorable for higher mortgage rates.

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