Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 11, 2009

Locking Stance: LOCKING    Mortgage Bonds: –6bp

Mortgage backed securities saw another down day yesterday, ending the day down 56 basis points and still leaving plenty of room to fall before the next level of support.  The good news is that a retracement still needs to occur as the last attempted move higher did not truly amount to one.  Despite that fact, mortgage bonds still need some sort of catalyst to give them strength and prevent them from falling into oblivion.

Data for today is the typical Jobless Claims and the addition of Retail Sales, the big player of the day.  Retail Sales came in just below expectations (0.5% versus 0.6%), and was inline when autos are removed (0.5% versus 0.5%).  However, when you extract the gasoline price increases (aka Retail Sales ex-auto and gas), the showing was not overly impressive, coming in at 0.1%, though still better than last month’s –0.1% showing.  Jobless Claims, the other data player today, came in below expectations (601K versus 625K) and brought the 4-week moving average to 621.75K.  The remaining “tests” of the day will be the 30-year Treasury Bond Auction to be released at 1:00, followed almost immediately by Dennis Lockhart speaking.  This afternoon could very well see MBS pricing come under pressure as the 30-year T-Bond results are released.

What does this mean for Florida Mortgage Rates?  Almost a broken record right now, mortgage rates are edging higher and the outlook continues to indicate that. 

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