Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on June 18, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: 0bp

Mortgage backed securities are in a fairly tight range today and stocks are fairly flat.  Today does not hold any data, but it is a “Quadruple Witching” day, meaning that today marks the expiration of the following:

  • Stock Index Futures
  • Stock Index Options
  • Stock Options
  • Single Stock Futures (SSF)

Sometimes things can get volatile, especially in the last hour of trading, as traders close out positions.  A Quadruple Witching day occurs once per quarter, in the last month of that quarter (March, June, September, December), while Triple Witching (aka “Freaky Friday”) or Double Witching occur at other times.  All of these events, namely every third Friday in the month, can be volatile, though many times it does not “spill over” into the mortgage backed securities market.  That means for at least most of the day MBS prices should hold steady, though as the day closes, particularly between 3:00 and 4:00 (the “witching hour”), MBS prices could make a move. 

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely hold steady throughout the day.  The short-term outlook is still favorable, but we are up against resistance, so be ready to lock if things change.  The long-term outlook remains good for steady and possibly improving mortgage rates.

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