Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on July 29, 2009

Locking Stance: LOCKING    Mortgage Bonds: +22bp

Mortgage backed securities ended the day just about even with their resistance layer, much as I expected.  However, this morning’s data has given them some much needed strength, I just wish I wasn’t stuck doing child retrieval duty this morning so I could have told you about it earlier (I was stuck on an airplane, though not actually working).  I still do not like the way the charts look right now though.

MBA Purchase Applications were released first, showing purchase applications held steady, though refinance applications dropped 11%.  The big news of the day was the Durable Goods Orders which were well below expectations, coming in at –2.5% versus a consensus of –0.5%, though when you take out transportation, it matched last month at 1.1%.  Looking into the report, transportation, most notably nondefense aircraft, was what caused the decline.  Can you say Boeing?  Factor out those factors and orders were mixed but generally gaining versus what the report shows. 

William Dudley was also speaking this morning and Crude Inventories was released.  The next big event for the day is the 5-year Treasury Note (T-Note) auction due to be released at 1:00.  Traders are somewhat concerned with this auction due to the lackluster 2-year Treasury Note auction yesterday.  The Beige Book will be released at 2:00 and Big Ben will be seen in Part 3 of his time on PBS later on tonight.

What does this mean for Florida Mortgage Rates?  With the breakout today, we can see some positive signs of mortgage rates possibly dropping.  However, things are still not all good news and the move could just be a brief one.

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