Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on January 29, 2009

Locking Stance: LOCKING    Mortgage Bonds: -19bp

Sorry for the delay this morning, but when I arrived at the hotel in Bolivia, they had problems with their internet and I just got online.  Things haven’t changed much in the markets as selling pressures continue to plague mortgage backed securities.

This morning saw some more data released with Durable Goods Orders leading the pack.  Durable Goods came in below expectations with a showing of -2.9% with the underlying numbers being even more gruesome than the overall.   Jobless Claims were also released this morning, again beating estimates with a showing of 588K and bring the 4-week average up to 542.5K.  New Home Sales brought more gloom to the housing markets with a showing of just 331k, well below expectations of 400K and setting a record low.

With all of the negative news surrounding the economy, mortgage backed securities should be in a rally mode, not slipping further.  The problem lies in some key areas, most notably the fact the Fed artificially inflated MBS pricing in the first place.  Another is that the 10-day moving average is proving itself to be tough resistance and compresses mortgage bonds against their floor of support.  One will have to break and then we can have a better picture of where mortgage rates are headed.

What does this mean for Florida Mortgage Rates?  Mortgage rates are succumbing to pressures to have them climb.  That will likely remain the case for the foreseeable future.

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