Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on September 25, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +6bp

Mortgage backed securities had a pretty good day yesterday, ending the day 28 basis points higher.  That placed them once again at the top of the trading sideways trading pattern and today they are trying to break through the ceiling.  Much of the reason for the move higher was the satisfactory 7-year Treasury Note Auction.

Providing some support for MBS prices was the Durable Goods Orders, which came in below expectations with a showing of –2.4% versus 1.0%.  Take out transportation and they still missed considerably, coming in at 0.0% versus expectations of 0.8%.  Big Ben spoke today to the Congressional Black Caucus Foundation but nothing market moving was within his speech.  New Home Sales followed the Existing Home Sales’ lead and came in below expectations with a 429K versus 445K showing.  But the main reason mortgage bonds are unable to break through the ceiling at the moment is Consumer Sentiment beat expectations, coming in at 73.5 versus 70.2.  The data has created another up and down day, but one that has not yielded a direction for mortgage rates behind the current sideways pattern.

What does this mean for Florida Mortgage Rates?  Mortgage rates will continue to hold steady, though they may creep slightly higher as the next week begins.  The outlook remains for steady mortgage rates (moving slightly higher or lower, but nothing significant).

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