Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on March 17, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +6bp

Mortgage bonds ended the day down only 6 basis points, and they have regained that loss at this point.  Mortgage backed securities remain trapped between their 25-day and 50-day moving averages, which will slowly close in on each other and force a move one way or the other, but there is still room in the range for now.  Data plays starting with tomorrow’s CPI and Fed Rate Decision could prove to be the pivotal point.

This morning’s data is backing up economic forecasts yet again, with Housing Starts and Building Permits both beating expectations and having showings higher than last month’s data.  Most notably was the dramatic increase in Housing Starts, led mostly by the multifamily component, though even single family homes edged up.  Today’s PPI numbers beat expectations, but the overall view of inflation at the producer level remains calm fortunately.

All eyes are now focusing on tomorrow’s CPI data and what the Fed will have to say as they make their rate decision tomorrow afternoon.  Remember that the Fed’s Policy Statement usually has more of an impact on MBS than the actual decision.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely hold steady today, maybe improve ever so slightly, but the long term outlook still remains unclear as to which direction mortgage rates will move.

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