Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on December 11, 2009

Locking Stance: LOCKING    Mortgage Bonds: –28bp

Mortgage backed securities are continuing their virtual freefall today after closing down 25 basis points yesterday.  The charts are a bit skewed as yesterday was the monthly mortgage bond coupon rollover, which was –31 basis points this round.

The 30-year T-Bond auction was met with poor results, adding another notch in the bad news for mortgage rates.  And continuing that trend, Retail Sales was much better than expected on both fronts, coming in at 1.3% (versus 0.9%) overall and 1.2% (versus 0.5%) when autos are removed.  Import prices rose sharply due to a weak dollar, but much of that will change as the dollar has seen strength lately.  Export prices are on the rise as well.  And yet another set of bad news is the fact Consumer Sentiment actually rose, beating expectations with a 73.4 versus 68.2 showing.

Looking at the charts, things have turned ugly to say the least with a head and shoulders pattern completely formed and with MBS prices now breaking through the 50-day MA in addition to the 25-day MA.  In fact, the only good thing in the charts was the crossover of the 100-day through the 200-day, but that will not likely last long.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging higher again today and will continue to do so for the foreseeable future, though a brief corrective period can be expected as well.

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