Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on April 23, 2009

Locking Stance: LOCKING    Mortgage Bonds: +3bp

Mortgage backed securities had another wild day yesterday, only this time they ended nearly flat, only down 3 basis points, which they have currently recaptured.  However, even when they fail to make gains, they fall further away from their 25-day moving average, that is until the average starts coming back down. 

There is a little more data that can be a factor today, along with some action in the Treasuries, so we may very well see some movement, especially this afternoon.  Data plays cover Jobless Claims and Existing Home Sales, with Jobless Claims coming in almost exactly as expected at 640K (versus 639K).  The 4-week rolling average ticked down slightly, to its lowest level since March, which may be a good sign but don’t expect the jobs market to be recovering anytime soon.  Existing Home Sales will be released at 10:00.

Despite some data being thrown out there, traders will be focused on this afternoon’s Treasury announcements of upcoming auctions, along with the 5-year TIPS Auction.  The Treasury announcements will cover a several auctions, the weekly 3-month T-Bill, 6-month T-Bill, and will include the 2-year T-Note, 5-year T-Note and 7-year T-Note.  All announcements will be made at 11:00 and there is expectations of the largest “flood” of Treasuries coming into the markets, which the added supply will put a lot of pressure on MBS pricing.  The 5-year TIPS Auction is at 1:00, so expect some action around that time as well.

What does this mean for Florida Mortgage Rates?  Mortgage rates are likely to tick higher today as the day plays out.  The outlook for mortgage rates remains favorable for higher mortgage rates for the foreseeable future.

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