Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on April 19, 2010

Locking Stance: LOCKING    Mortgage Bonds: –6bp

Today’s report was delayed so I could get some sleep after flying back from Brasil, an all-nighter.  I also had to get my weekly Mortgage Market Update posted at Lenderama, so don’t forget to check it out.  With a lack of significant data, the delay doesn’t really change anything.

Mortgage backed securities managed to finally break through their 25-day moving average, a very strong resistance layer, and successfully change the short-term outlook.  I remain favoring a locking stance because there remains a high degree of uncertainty in the markets, as well as several more tough resistance layers that could send mortgage rates back higher.  The only data for today was the Leading Indicators report, which showed Leading Indicators rose 1.4%, beating expectations of 1.1%, and up from 0.1% in the last report.  That displays more unfavorable data that shows a continued economic recovery, albeit slow.  The Treasury Auctions (3- and 6-month T-Bills) continue to see very strong demand, and that is keeping MBS prices from plummeting.  Thursday’s Treasury Announcements will be the ones to watch as they could force a major movement in either direction.

What does this mean for Mortgage Rates?  Mortgage rates are holding steady right now and the short-term outlook favors steady mortgage rates, maybe even with them edging lower.  The long-term outlook is questionable and likely will not be determined until Thursday, though volatility could change the picture quickly.

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