Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on April 30, 2009

Locking Stance: LOCKING    Mortgage Bonds: –19bp

If you recall, back on Monday I felt any move by mortgage bonds above the 25-day moving average was likely going to be a “head fake” and nothing more.  Well, that appears to be exactly the case as mortgage backed securities jumped above their 25-day moving average and are now trading below it again.  In fact mortgage rates are poised to end the week higher by the looks of things.

As promised, I gave my personal opinion as to the Fed’s Policy Statement over at Florida Mortgage Report for those whom would like to read it.  As for today’s news, the big data play is already out there, which was the Personal Consumption Expenditures Index, or PCE.  Core PCE is holding steady at 1.8%, with the monthly increase being as expected at 0.2%.  Of course, some other data plays are hitting the airwaves and another biggie is just around the corner.

Jobless Claims came in below expectations with a showing of 631K versus 640K, bringing the 4-week rolling average to 637.25K.  Personal Income and Personal Spending both came in just below expectations as well.  Even the Employment Cost Index came in below expectations at 0.3% versus 0.5% and annually at 2.1% versus 2.6%.  Overall, it was a mixed bag of data as far as mortgage rates are concerned.  Chicago PMI is the one about to be released (9:45) and I expect that to beat expectations.  Paul Vocker will be speaking this afternoon and may make some ripples in the markets as well.

What does this mean for Florida Mortgage Rates?  Mortgage rates are again looking like they will rise for the foreseeable future, though the picture still holds uncertainty.

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