Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on March 24, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: –3bp

Mortgage backed securities held to only slight losses yesterday, as expected, in the wake of a beautiful day for those in the stock market as the DJIA ended the day nearly 500 points higher, bringing to question if the bear market is over.  Personally, I don’t think so.  That being said, the bear market in MBS is being held off by the Fed.

Today will likely see mortgage bonds bounce of support at the 50% retracement level, maybe several times.  As long as this level holds, mortgage rates should hold steady, maybe even improve slightly.  MBS weren’t the only ones holding their own against a rising stock market as yesterday’s Treasury Auctions (3 and 6-month T-Bills) saw high bid-to-cover ratios and decreasing yields.  How much was the Fed’s actions remains to be seen.

Today won’t see much in the way of news or data, just some speeches and this afternoon’s Treasury Auctions.  Big Ben is providing testimony today, which has already been released, as was this morning’s speech by Charles Evans. 

What does this mean for Florida Mortgage Rates?  Expect mortgage rates to continue to remain steady for the foreseeable future and until the long term projections solidify.

Leave a Comment

Previous post:

Next post: