Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on October 21, 2009

Locking Stance:  LOCKING    Mortgage Bonds: –31bp

Mortgage backed securities started their struggle yesterday as they did what I expected, reaching their 10-day moving average.  In fact they got to 101.15625 (101.16), almost to where I said they would reach before turning lower again (101.18).  OK, I was off by 2 basis points, sorry.

Today, MBS pricing continues to drop, currently down 31 basis points on the day.  They are struggling to find the strength to hold above their 50-day moving average as they have dropped through their 200-day moving average after failing to even hold above their 25-day moving average yesterday.  MBA Purchase Applications showed a 7.6% drop in Purchase Applications (adjusted for the holiday) and Refinance Applications were down 16.8% (also adjusted).  Crude Inventories came in at 1.3M with gasoline stocks dropping 2.3M, down for the second straight week due to limited output at refineries caused by thin margins.  That is driving oil and gas prices higher, raising concerns for inflation, and that is sending MBS prices lower.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging higher and the outlook continues to favor higher mortgage rates.

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