Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on April 28, 2009

Locking Stance: LOCKING    Mortgage Bonds: 0bp

Mortgage backed securities had a good day yesterday, even breaking above their 25-day moving average.  I was tempted to change stances, but I like to see more “reality” before doing so.  Technically speaking, this is a good move, though they have more resistance just above their current levels and may drop to test that 25-day moving average today.

The move higher yesterday was due to stocks plunging based on sick pigs and the potential pandemic of Swine Flu.  When stocks drop so dramatically, most of that money flows to “safety”, meaning bonds, including mortgage bonds, benefit.  Once reality hits the markets and data flows, I still expect MBS pricing to be under heavy pressure.  So, as the week progresses, we will see if this move yesterday is a solid one or not as I mentioned yesterday.

What does this mean for Florida Mortgage Rates?  The outlook is better, but the future remains uncertain at this point.  As the day, and week, progress, certainty of the future of mortgage rates will return. 

PS – I will be flying all day today and may not be able to provide an update should the picture improve. 

Leave a Comment

Previous post:

Next post: