Florida Mortgage Rates – Midday Report

by Florida's #1 Mortgage Planner on April 29, 2010

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +6bp

Sorry about the quick, unformatted message earlier, but I only had a few minutes to put it together and my phone’s internet signal was very weak inside the conference room.  For those wondering, I am at the Glazer-Kennedy Inner Circle Marketing Super Conference, the first time I have been able to attend, but that means unless something extremely drastic happens, my reports will be at the midday (lunch break) timeframe, today and tomorrow.

OK, as promised, I have more details.  We can thank Spain for keeping lower mortgage rates in the picture, as their debt was downgraded yesterday.  Additionally, the 5-year auction was solid with a bid/cover ratio of 2.75 and yields at 2.540%.  The FOMC Policy Statement and rate decision were essentially non-events as nothing changed.

Today’s events included the weekly Jobless Claims report, which came in at 448K, just above the expected 447K.  That brings the 4-week moving average up slightly to 462.5K.  Continuing claims dipped slightly to 4.645 million.  The 7-year auction was released a short while ago and was also solid with a bid/cover of 2.82 and yield of 3.210%.  MBS prices are holding their ground as a result.  I will hit technical analysis over the weekend in my weekly Mortgage Market Update at Lenderama.

What does this mean for Mortgage Rates?  Mortgage rates are holding steady, even edging lower.  The outlook is still far from certain, but things are looking good for the potential of lower mortgage rates, at least for the near-term.  The long-term downtrend is still intact, so time will tell if mortgage rates can truly break lower.

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