Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on May 24, 2010

Locking Stance: LOCKING    Mortgage Bonds: +6bp

One thing I did not announce over the weekend, mostly due to the fact I wasn’t sure I wanted to start it this week, is my new show on Blog Talk Radio, which I hope to air weekly at 11:00 ET on Monday.  Currently, I am keeping the show to 15 minutes or less, though I do plan on adding more to the show as it evolves.  It actually wasn’t until I was doing this week’s Mortgage Market Update at Lenderama when I said to myself to stop procrastinating (I think a year is long enough…lol) and get going with the show.  Well, the first episode is now available online, albeit rough around the edges, so check it out and mark the show on your calendar as I plan to offer Q & A at the end, possibly starting next week.

OK, enough of that, let’s dive into today’s action.  Well, the only data is that of Existing Home Sales, which was reported at 5.770M, above estimates of 5.600M, and up from 5.350M last report.  Keep in mind to take this data with a grain of salt as it is lat month’s numbers and does not reflect the “reality” of today.  In fact, looking at the significant decline in mortgage applications for purchases indicates we will have a very different picture next month.  That being said, the numbers represent a 7.6% rise month/month and 22.8% year/year.  Besides the mortgage applications aspect, one detail in the report that is also disturbing is the fact home inventories rose 11.5%, and that means housing prices will also be on the decline in all likelihood.  Well, if history repeats itself, as it usually does, housing prices still need to come down considerably before the market can truly recover, so watch out if you are a homeowner.

In other news, we will see the weekly short-term Treasury auctions and global concerns are still making headlines, especially now that Spain is seeing its banks failing.  That will help keep MBS prices from collapsing, though we still need to have a genuine correction, at least back to the 10-day moving average.  Stochastic indications and the weakness displayed currently indicate this retracement has likely begun.  Overall, the charts are still looking good for steady or even lower mortgage rates in the near future, though the very short-term is for mortgage rates to edge higher as the move corrects itself.

What does this mean for Mortgage Rates?  Mortgage rates will likely edge slightly higher in the coming days, though the long-term outlook is currently for mortgage rates to edge back lower, remaining fairly stable or even pushing to new lows.  For the far-seeing future, namely towards the end of the summer, I believe mortgage rates will begin to move higher and leave these types of mortgage rates as history only.

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