Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on March 26, 2009

Locking Stance: LOCKING    Mortgage Bonds: 0bp

Mortgage bonds held up fairly well yesterday, only down slightly again and against the data plays which favor sending mortgage rates higher as well.  Yesterday’s Treasury Auction of the 5-year T-Note saw the end of strong auctions with the bid-to-cover ratios dropping, though yields did drop slightly.  It looks as though longer term Treasuries are seeing weakness in demand these days and that will spill over into MBS demand as well.

Today has some data plays as well, with Jobless Claims leading the day off, except for Dennis Lockhart’s speech early this morning in Paris.  We also have the GDP hitting the airwaves this morning.  Both of these reports were released just a minute or two ago and here are the results…

Jobless Claims came in at 652K, essentially inline with expectations.  GDP came in at –6.3%, slightly better than expectations and the GDP Price Index was inline with expectations at 0.5%.  Overall, the news is the same, that while the economy is still weak it is not as bad as expected and may be moving toward recovery, certainly not the favorable news mortgage backed securities would like to see.

Later today, Timothy Geithner will be speaking, as will Richard Fisher, Jeffrey Lacker, and Gary Stern.  Expect them to try and talk up the markets.  The final set of data will be the weekly Money Supply release.

What does this mean for Florida Mortgage Rates?  Mortgage rates will continue to see pressure to move higher, though the Fed is determined to keep them steady, so they will likely not move much, if at all right now.  The longer term outlook remains shady at the moment.

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