Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on April 26, 2010

Locking Stance: LOCKING    Mortgage Bonds: +19bp

Mortgage backed securities are having an “up” day despite the negativity shown in the charts.  The move is mostly due to news, such as the Treasury’s announcement that it will sell 1.5 billion shares of Citigroup (C) which it acquired as part of the bailout package last year.  Additionally, there continues to be a flight to safety over  Europe’s continued problems.

Data is non-existent today, but there are some Treasury Auctions to talk about.  The weekly 3-month and 6-month T-Bill auctions have already been released and showed continued strong demand, mostly due to the Greek debt problem, among other things.  While there were strong bid/cover ratios, one thing to note is that yields did edge higher on both auctions, but the results are keeping MBS prices in the green today.  Still to come is the more important event of the day, the 5-year TIPS auction, which could tip the scales in the other direction.  I know, bad pun.

Currently, MBS prices are hovering around their 10-day moving average, awaiting this afternoon’s auction results.  Odds favor a turn lower in MBS prices, but stronger than expected results could break the forecast.  For more technical analysis, don’t forget to head over to Lenderama and read my weekly Mortgage Market Update.

What does this mean for Mortgage Rates?  Mortgage rates edged slightly lower this morning, but things could change quickly this afternoon.  Overall, odds favor mortgage rates edging back higher, but that could change and I will report back if it does.

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