Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 2, 2009

Locking Stance: LOCKING    Mortgage Bonds:  +22bp

Mortgage backed securities went crashing towards the floor (200-day moving average) again yesterday, ending the day down 153 basis points, just over 90 basis points from when yesterday’s Florida Mortgage Rates Report was issued.  This morning, we are seeing a bit of a bounce back, which is not uncommon after big moves like yesterday, though there are negatives that can be seen.

There is not much economic activity, or even speeches, that would drive the markets today, so technical factors and news will be in charge.  On the technical side, it is ugly to say the least.  We are seeing a negative stochastic crossover, and yesterday’s move rendered the recent retracement complete and signaled the potential momentum that could break through the coveted 200-day moving average support layer.  I have been talking about the “mortgage rate bubble” more recently over at Florida Mortgage Report, particularly that this move could be indicative of it “popping” in two posts that started back on May 22, 2009, the Friday before the first freefall.

What does this mean for Florida Mortgage Rates?  Expect mortgage rates to continue to climb for the foreseeable future, at least for now.

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