Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on May 22, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +28bp

Well, if you heeded my warning yesterday, meaning to lock as soon as pricing came out in the morning, you saved yourself money for sure.  Mortgage backed securities did much what I expected yesterday, begin the day well, then plummet, though they did fall further than I thought they might, as they ended the day down 66 basis points, crashing through not only their 25-day and 50-day moving averages, but also their 100-day MA.

Most of the crash came as Treasury Auctions were announced, thus the added supply that will be heading into the markets next week.  Data showed Jobless Claims are still high, coming in at 631K, but well below the estimates of 645K.  LEI was inline at 1.0%, but the Philly Fed Index was worse than expected at –22.6, but better than last month. 

Today, we will likely see a retracement of this move, testing the ability of the 100-day moving average to regain as support.  If it holds as support, mortgage rates may improve as the next week starts.  If it acts like resistance, I will update you again with my stance changing  back to locking.

What does this mean for Florida Mortgage Rates?  Mortgage rates moved higher yesterday, though today should see some slight improvement.  The outlook for the next week will depend on today’s move.

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