Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on May 7, 2009

Locking Stance: LOCKING    Mortgage Bonds: –19bp

Mortgage backed securities continue to edge slightly higher and remain above their 25-day moving average, yet I have remained concerned about the future and for just cause.  Just last week we had a major head fake as they soared above their 25-day moving average, only to fall back through that level and test their 50-day moving average just two days after reaching their highs.

This morning  saw another better than expected showing of Jobless Claims, this time coming in at 601K versus expectations of 635K.  This has also brought the 4-week rolling average down to 623.5K and adds another signal of an improving, or at least less sucking, economy.  On the good news side for mortgage bonds, productivity was up 0.8% versus expectations of 0.0% and unit labor costs were slightly below expectations, coming in at 3.3% versus 3.4%.  Overall, the traders focus will be on jobs and with the potentially better than expected Jobs Jamboree tomorrow, things could get very ugly, very quickly for mortgage backed securities.  Adding to the problem will be this afternoon’s 30-year Treasury Bond Auction.

What does this mean for Florida Mortgage Rates?  As I have been expecting, mortgage rates will be on the rise today, and likely continue to do so for the foreseeable future.

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