Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 3, 2009

Locking Stance: LOCKING    Mortgage Bonds: +12bp

Mortgage backed securities managed to rebound from their lows after dropping close to their 200-day moving average, though they didn’t make it all the way down.  However, the picture has not changed much overall, as we still have a negative stochastic crossover, plenty of room to drop, as well as some room to move higher.  Odds remain most favorable to MBS pricing dropping, that is unless we get some catalyst to kick start them.

As for a catalyst to get them moving higher, Big Ben Bernanke is out speaking at this very moment and we saw the release of the ADP Employment Report this morning.  The ADP Employment Report is not a very accurate predictor of Friday’s “Jobs Jamboree”, but it does set traders’ expectations up.  The ADP report came in slightly worse than expected, which was good for MBS pricing and we just saw the next data bit, the ISM Services Index which was worse than expected, another plus for mortgage rates.  Tom Hoenig will be speaking this afternoon as well.

What does this mean for Florida Mortgage Rates?  The overall picture remains favorable for higher mortgage rates, though some activity today may try to change that picture.

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