Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on February 19, 2009

Locking Stance: LOCKING    Mortgage Bonds: -19bp

Mortgage backed securities developed a “doji” yesterday, spelling out that their preferred direction is lower, which will send mortgage rates higher.  This morning is further evidence as they are already dropping, likely to retest their support.

Today’s data plays surround the PPI, Philly Fed, and Jobless Claims, PPI and Jobless Claims were already released.  Jobless Claims once again came in higher than expected and sent their 4-week average higher as well.  New claims came in at 627K and the rolling 4-week average is up to 619K.  PPI was also higher than expected, signaling inflation may be returning, something I have talked about for months now.  Remember that PPI, CPI, and even the Fed favorite, PCE, all are lagging indications of inflation and you could see trader’s realizing that fact in the markets.  The Philadelphia Fed will be released at 10 am, but I will be in the air, returning to Miami from Boston at that time.

What does it mean for Florida Mortgage Rates?  As I have said for some time, mortgage rates, despite the Fed’s promises, are still heading higher.

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