Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on October 28, 2009

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds: +34bp

While I cannot say I am overly optimistic right now about the future of mortgage rates, with the stock market finally fizzling out and with recent Treasury auctions doing well, mortgage backed securities are enjoying a run-up.  Will it last?  We will see, but the charts do not think so.  Nevertheless, I am going to switch my stance as lenders may re-price for the better here.

We still must wait for the 5-year T-Note auction this afternoon, which could change things quickly, but here is the data so far today.  MBA Purchase Applications dropped again this week, showing a 5.2% decline in Purchase Applications and a 16.2% decline in Refinance Applications.  As I stated earlier, Durable Goods Orders were released and were below expectations on New Orders that included transportation.  New Orders came in at 1.0%, below estimates of 1.5%, though the year over year change was at –19.6%, slightly higher than estimates of –20.2%.  Excluding transportation, the numbers were 0.9% versus 0.0% estimates and –16.9% versus –18.9% estimates, respectively.  New Home Sales were reported at 402K, well below estimates of 440K, and down from last month’s 429K.  This is another shot in the arm saying that while prices are climbing slowly, the housing market is not really rebounding very well.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging lower again today, though this move may be short-lived.  Nevertheless, if you have not locked, wait until your lender re-prices their loans.

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