Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on February 10, 2009

Locking Stance: LOCKING    Mortgage Bonds: +22bp

Mortgage backed securities ended the day yesterday on a good note, closing 38 basis points higher and allowing mortgage rates to tick slightly lower.  The problem is that the move is likely nothing more than the correction I have been talking about and they failed to break above their 50-day moving average.  This morning, they continue their move higher, but are still far from breaking through resistance.

The Treasury Auctions yesterday were met with solid demand, but yields continue to rise, so we can expect that rising rates will flow across the board into longer time frames, including those on mortgage backed securities.  The 3-month closed at 0.34% and the 6-month closed at 0.48%, up from 0.27% and 0.39% respectively.

Today will see more Treasury Auctions, the most important for mortgage bonds being the 3-year T-Note Auction at 1:00pm.  We are still facing news headlines surrounding the stimulus package and that will be the major player of the day.

What does this mean for Florida Mortgage Rates?  The correction may continue, but likely has run its course.  For now, indications point to mortgage rates resuming their climb.

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