Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on April 15, 2009

Locking Stance: LOCKING    Mortgage Bonds: –6bp

Mortgage backed securities managed to make some gains yesterday, moving higher from their 25-day moving average, but still not enough for me to be happy about the future.  The move may be only due to the Fed’s manic buying of Treasuries and MBS, such as their $7.3 billion purchase of Treasuries yesterday.  Data, though is a mixed bag.

We saw favorable data plays yesterday, but this morning threw in a change-up.  While CPI was benign overall, the Empire State Index was much better than expected.  The MBA Purchase Applications dropped this week, with both purchase and refinance transactions dropping 11%.  Overall CPI came in at –0.1%, below estimates of 0.2%, and brought the annual rate to –0.4% and throwing deflation back in the mix.  Core inflation, however, paints a different picture, as it met expectations of 0.2% and the annual rate is 1.8%, indicating that everything but volatile food and energy remains rising in price.  So much for genuine deflation, huh?  Adding to the problems for mortgage bonds today, the Empire State Index, though negative, was way better than expected, coming in at –14.7 versus the consensus of –34.0.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely be under some pressure today and the outlook remains uncertain at this time.

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