Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on March 4, 2009

Locking Stance: LOCKING    Mortgage Bonds: 0bp

Mortgage bonds managed to resume the correction, doing almost exactly what I expected.  In another volatile day, the traded within a 63 basis points spread and ended the day up 16 basis points, with some lenders repricing for the better in the afternoon.  The problem is, as the correction I have been talking about takes place, the 25-day moving average was once again overpowering for the markets and mortgage backed securities failed to break through this level by the day’s end.  They may retest this level again today, but unless they succeed in breaking through the “roof”, MBS pricing will falter again and mortgage rates will tick higher.

I will be in the air today and unable to report major changes, but I suspect the 25-day moving average will hold.  There are some opportunities for bonds to break free, namely the ADP Employment Report this morning and the Beige Book this afternoon.  If they do break free, I may change my stance tomorrow, and I will try to get a recap post out this evening when I get back home to Miami.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely hold steady or tick higher today unless data or events can break resistance.

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