Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on June 7, 2010

Locking Stance: LOCKING    Mortgage Bonds: +3bp

Mortgage backed securities are continuing to see-saw after Friday’s nice run right up to a very strong resistance layer.  MBS prices are failing to remain higher than this level despite repeated attempts and that means the rally may be ending.  While the charts look good overall, without a definitive pattern formed, and with the last correction potentially falling short, the picture could change quickly.  It is still too early to tell for sure, but risks outweigh potential rewards and that keeps me in favor of locking.

Today is another day that lacks data, though we will see Consumer Credit later today.  The Treasury auctioned its weekly short-term Treasuries (the 3-month and 6-month T-Bills) and the results were unusually strong, yet MBS prices have failed to rally beyond their resistance, a negative indication.  The 3-month T-Bill saw a bid/cover of 4.80 and its yield dipping to 0.130%.  The 6-month T-Bill saw a bid/cover of 4.53 and its yield dipping slightly to 0.210%.  Both of these auctions continue at their highest bid/cover ratios despite near their large amounts.  With results like these, one would like to see more advances in MBS prices, which is currently not the case.

For more on the technical analysis, or chart forecasts, check out my weekly Mortgage Market Update at Lenderama, posted this morning.  You can also listen to my weekly Mortgage Market Weekly at BlogTalkRadio and feel free to join in and ask questions live during my upcoming broadcasts.  I would also like to hear from you about what you would like discussed on that show.

What does this mean fro Florida Mortgage Rates?  Mortgage rates are currently holding steady, though the future may not be as bright as the charts are showing.  Risks continue to outweigh potential rewards, demanding a locking stance currently.

Leave a Comment

Previous post:

Next post: