Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on May 26, 2009

Locking Stance: LOCKING    Mortgage Bonds: -3bp

I hope everyone had a great day off yesterday, and while things appeared rosy for mortgage backed securities, they no longer are.  One of the things helping MBS pricing was the fact the Iranians have been shooting missiles and since they are a potential nuclear threat, the uncertainty sends money over to bonds, including mortgage bonds.  However, data is again hitting mortgage backed securities hard.

The Case-Shiller HPI showed another decline, but that hasn’t had much affect on the markets, especially since Consumer Confidence, the most important data play today, hit the airwaves.  Consumer Confidence blew away expectations of 43.0 with a showing of 54.9.  That is killing MBS pricing as stocks are rallying.  There is still support that is holding, but as Treasury supply makes its way into the markets, that support may have a very hard time holding.

What does this mean for Florida Mortgage Rates?  Mortgage rates may remain fairly steady, though a slight increase may be seen.  The outlook is for higher mortgage rates unless the picture changes significantly.

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