Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 22, 2009

Locking Stance: LOCKING    Mortgage Bonds: +9bp

Mortgage bonds finished the day yesterday down 28 basis points, rebounding from their lows.  Today will likely be another volatile day and we should see MBS likely gain slightly and remain in their current sideways pattern, though pressures to drive mortgage rates higher may knock them out of this pattern.  Indeed, we have seen MBS jump higher, only to fall back again already today.

This morning already saw some data plays, namely the Jobless Claims and Housing Starts data, though a couple of others were also released.  MBA Purchase Applications were were up slightly, but refinance applications dropped over 12% as mortgage rates ticked a little higher.  Initial Jobless Claims were greater than expected, coming in at 589K and bringing the 4-week moving average to 519.25K.  Housing Starts continued to fall, coming in at just 0.55M and Building Permits plummeted to 0.549M.  One good note is that Housing Starts in the Northeast actually rose by over 12%.

Later on, we will see the release of the EIA Petroleum Status Report (aka Crude Inventories), and we will end the day with the weekly release of Money Supply.  We will also see the level of purchasing of mortgage backed securities done by the Fed.

What does this mean for Florida Mortgage Rates? We still see some continued pressure for mortgage rates to climb and the Fed has either not stepped up enough, or has simply sat out.  I expect mortgage rates to remain fairly stable, with added potential for climbing rates for now.

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