Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 4, 2009

Locking Stance: LOCKING    Mortgage Bonds: –34bp

Mortgage backed securities managed to end the day up slightly yesterday (15bp), but as the charts were showing, that attempt to hold their ground was futile.  This morning, they are working their way back towards that coveted 200-day moving average support layer.  With the 200-day moving average working its way higher every day, the gap between current pricing and support is lessening.

This morning saw Jobless Claims come in inline with expectations (621K versus 620K), with the 4-week moving average climbing up to 631.25K.  Productivity came in higher than expected (1.6% versus 1.2%), but Unit Labor Costs were also higher than expected (3.0% versus 2.8%).   Sandra Pianalto and William Dudley have already made speeches today and Big Ben Bernanke is doing one right now as well.  This afternoon, Treasury announcements of longer term bonds and notes could add to any selling pressures as traders continue to wonder how the added supply will be absorbed.

What does this mean for Florida Mortgage Rates?  Mortgage rates are still favored to climb, at least for now.

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