Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 27, 2009

Locking Stance: LOCKING    Mortgage Bonds: 0bp

Mortgage backed securities, and subsequently mortgage rates, did not change yesterday as MBS ended the day down 9 basis points and almost exactly where lenders priced their loans in the morning.  Treasury Auctions yesterday were the only plays that remained and that went fairly well.  The 3-month came in at 0.150%.  The 6-month came in at 0.345%.  The 20-year TIPS came in at 2.500%.  All of these auctions show investors seeking higher rates of return and that will spill over into mortgage rates as well.

Today, we have already seen the Case-Shiller HPI, which was below the prior report on both accounts.  The biggest losses were out West, with the following results:  -32.9 percent Phoenix, -31.6 percent Las Vegas, -30.8 percent San Francisco, -26.9 percent LA, -25.8 percent San Diego.  These are reflective of the rising levels of West Coast foreclosures and point to mid-teen declines in housing prices.

We have yet to see the Consumer Confidence data (10:00) and the results of this afternoon’s Treasury auctions.  We can expect fair demand with increased yields on the Treasuries as we have been seeing.  Consumer Confidence may very well beat expectations as well, but that remains to be seen.

What does this mean for Florida Mortgage Rates?  Mortgage rates will continue to feel pressure to climb, with basically the Fed being the only one buying them right now.  Overall, I expect them to hold steady if not increase slightly.

Leave a Comment

Previous post:

Next post: