Florida Mortgage Rates – Morning Report

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

Locking Stance: LOCKING    Mortgage Bonds: –3bp

Mortgage backed securities took a plunge yesterday afternoon as stocks moved higher.  While it was not entirely expected after MBS held yesterday morning, it was not a real surprise to anyone who has been following my commentary as I mentioned numerous times that I do not like the way things look, even though things were looking better.  Alas, my instincts were realized.

I did not change stances yesterday, however, as mortgage bonds managed to hold around their 25-day moving average, keeping hope alive.  Today, they have dropped slightly below this important level, so while hope is not completely lost, the picture is now favoring what my suspicions were and that is not good for mortgage rates.

The only report that could save today is Consumer Sentiment at 9:55.  Unfortunately, that report will not likely be a surprise that will drive mortgage rates lower.  In fact, the odds favor a surprise that will actually drive mortgage rates higher instead.  Beyond Consumer Sentiment, all hope for today remains attached to Big Ben Bernanke as he speaks at high noon.  Big Ben is good at talking up the markets, the question is which market he directs his speech to this time.

On the technical side, which is what I favor if you hadn’t figured that out yet, the picture is becoming grim again.  As I mentioned, MBS pricing has dipped below their 25-day moving average and Stochastic indications have developed a negative crossover, indicating the odds are pricing will continue to deteriorate.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely rise slightly today and the outlook, while not entirely certain, favors higher mortgage rates again.

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