Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on May 5, 2009

Locking Stance: LOCKING    Mortgage Bonds: +16bp

Yesterday saw mortgage backed securities push up 25 basis points even with the stock market climbing.  This morning has seen the second run up of 16 basis points, but will it fail again?  Personally, I think so.  I think this move is more of a correction than a genuine move.

We have some more Fed speeches slated in the program today, with the only real data play being the ISM Services Index.  This afternoon will have more Treasury Auctions and with the demand for higher yields returning, the markets may falter across the board in the bond pits. 

On the technical side, we see some good signs here and there, but overall I have yet to see anything that solidifies a move toward lower mortgage rates for the future.  The Fed appears to be stepping up their MBS purchasing and that may be the sole reason for the move higher recently.  Time will tell for sure, but this individual remains skeptical at the moment.

What does this mean for Florida Mortgage Rates?  There may be an ever so slight improvement in mortgage pricing this morning, but the trend toward higher mortgage rates looks to be resuming soon.

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