Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 15, 2009

Locking Stance: LOCKING    Mortgage Bonds: 0bp

Mortgage bonds had a rough day yesterday despite the favorable news and data.  On a day when the DJIA is down nearly 250 points, mortgage backed securities should be rallying.  Instead, MBS fell 9 basis points on the day, certainly not showing any strength just as I expected.

This morning saw several key points of data, though not major players.  Initial Jobless Claims, which is released every Thursday, was worse than expected this week, coming in at 524K versus 503K.  Producer Price Index, a look at inflation at the producer level, came in inline with expectations, but the core PPI beat expectations, which should raise at least a little concern.  The Philadelphia Fed Index is the major player today and is due out at 10am.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely remain steady again as they lack strength to move lower without the Fed’s assistance, but the Fed will likely intervene if rates begin to edge higher.

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