Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 10, 2009

Locking Stance:  LOCKING    Mortgage Bonds: –31bp

Mortgage backed securities had a pretty good day yesterday, ending up 31 basis points, but were unable to hold their ground above that latest support layer they crashed through.  That is not a good sign, especially when stocks were weak, and that sets up the next leg down, which we are seeing already this morning.  The culprit, inflation.

This morning saw oil prices climbing through $71 on optimism regarding the Chinese and US economies.  With oil climbing, stocks looking to rally, and the foreseeable results of government overspending, is it any wonder inflation fears are going to be at the forefront of traders’ minds? 

Purchase applications were up this last week, and as expected refinance apps fell.  The Balance of Trade came in a little below expectations with a showing of $-29.2 billion.  Later today we will see Jeffrey Lacker speak, Crude Inventories, Elizabeth Duke speak, the 10-year T-Note Auction and then the Beige Book.  I think with the added supply hitting the markets and the reactions of stocks will be the key players of the day and that will likely put pressure on MBS pricing.

What does this mean for Florida Mortgage Rates?  Look for a slight increase in mortgage rates this morning, effectively erasing the gains of yesterday.  The remainder of the day may see mortgage rates tick higher as well.  The overall outlook remains most favorable for higher mortgage rates.

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