Florida Mortgage Rates – Evening Report

by Florida's #1 Mortgage Planner on January 25, 2010

Locking Stance: LOCKING    Mortgage Bonds: –12bp

Mortgage backed securities fell today, though they ended around the middle of the trading range and remain between their 200-day (support) and their 100-day (resistance) MAs.  The reason for the delayed report was I wanted to be able to launch my new site for MBS Commentary but ran into snags over the weekend.  I am going to be adding content this week, maybe even my typical weekly Mortgage Market Update, so stay tuned for the details as I hope to have MBS Commentary’s design completed soon.

As for today’s data, Existing Home Sales dropped significantly and came in well below expectations with a 5.45M result versus the expected 5.90M.  That marks a 16.7% drop and brings the year/year rate to 15.0%.  Certainly not a good sign for the housing market recovery.  Short-term Treasury auctions continue to see strong results and that is providing some support for MBS prices.  Tomorrow, more minor data will be released and the Treasury will hold its 2-year T-Note auction.  However, all eyes are beginning to focus on the FOMC Meeting and are awaiting the Fed’s decision on rates and their Policy Statement to be released on Wednesday.

Looking at the charts, we see the 10-day MA climbing and likely crossing the 200-day MA, a good sign.  However, stochastic indications have moved into the overbought territory and we have not seen a solid retracement of the last move higher, which hints that MBS prices may fall further.  It will be interesting to see where mortgage rates move the next couple of days.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging slightly higher and the outlook for the near term appears to favor slightly higher mortgage rates still.  The long-term outlook is becoming questionable.

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