Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 9, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +21bp

Mortgage backed securities went into another freefall yesterday, ending the day down 81 basis points and making there fall from the highs of May 21 totaling 481 basis points!!  MBS pricing has not been at this level since last November and we have again broken through another support layer.

The good news is that with every dramatic move, whether lower or higher, requires a retracement move and the retracement for this latest move seems to be beginning.  That allows those of you whom have been waiting on the sidelines or simply didn’t heed the advice to lock earlier, a brief period to get slightly better rates than they were yesterday, but you likely will not see those low mortgage rates again for some time.

As for news, we remain absent of any economic data that will really get the markets moving.  With that in mind, MBS pricing will likely push to test the support layer they broke through yesterday to see if it holds as support or becomes resistance.  If this is the beginning of the retracement and it is a fairly good one, we will likely push back through this layer and maybe even up to the 200-day moving average in the coming days.  Time will tell for sure, but for now it appears that cautiously floating may be the best move if you haven’t locked so far.

What does this mean for Florida Mortgage Rates?  Mortgage rates over the long haul still favor rising, however, we appear to be in a brief period where floating is in order.

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