Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on May 12, 2009

Locking Stance: LOCKING    Mortgage Bonds: –12bp

Once again, I was trapped in an airplane without internet access yesterday, which makes me very upset that I cannot provide you constant updates when that happens.  The remainder of the month is looking better in that regard and next month’s schedule is beginning to develop.  Nevertheless, mortgage backed securities had a fairly good day yesterday, but look to begin to drop again today.

Technical factors show that while MBS pricing has some strength behind it, most likely their 50-day moving average will hold as resistance.  The Fed has been buying MBS and Treasuries like mad in an effort to keep mortgage rates steady, but their efforts may not be enough as market forces, backed by data, are trying to drive mortgage rates higher.  With the Fed’s MBS purchasing spree approaching the half billion mark, that $1.25 trillion cap may need to be extended, again.

There is not any data today beyond this morning’s Balance of Trade report, which came in essentially as expected at $-27.6 billion.  That leaves news and technicals in the driver’s seat and that is not good news at the moment.

What does this mean for Florida Mortgage Rates?  Currently, for the foreseeable future, mortgage rates look poised to remain steady or climb slightly.

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