Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on February 2, 2010

Locking Stance: LOCKING    Mortgage Bonds: 0bp

Mortgage backed securities continue to be unable to mount any type of successful attempt to break resistance of the falling 50-day MA, which is now below the 100-day MA.  As mentioned before, this signal is indicative of the beginning of a new downtrend if it continues, which seems to be the path of least resistance, no pun intended.

Pending Home Sales showed a glimmer of hope as the numbers rebounded sslightly, up to 96.6 from 96.0.  Tomorrow will be the beginning fo the real fun, and also the potential "nail in the coffin" for MBS prices, as we begin the Jobs data with the ADP Employment Report, which pretends to forecast the results of Friday’s Jobs Jamboree.  We will also see the next big set of Treasury Auction Announcements, including the 3-year and 10-year T-Note auctions and the 30-year T-Bond auction coming up.  "The Captain has turned on the seatbelt sign as we are expecting some turbulence up ahead."

What does this mean for Mortgage Rates?  Mortgage rates are holding steady today, though the outlook is again turning negative, even if uncertain.  The next few days will clearly tell the future.

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