Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 12, 2009

Locking Stance: LOCKING    Mortgage Bonds: +31bp

Mortgage backed securities rallied yesterday as the correction, or retracement, began.  There are mixed indications in regards to this movement, so exactly how much longer it will last is uncertain.  First off, overhead resistance, which has been tested twice since Tuesday, managed to hold firmly and pushed MBS prices back down.  However, stochastic indications remain in the oversold spectrum and indicate the need for more of a correction.  With the 30-year Treasury Bond Auction yesterday going fairly well, the short term outlook for mortgage rates favors at least another test of that resistance layer, which has actually already happened and MBS pricing has failed to push through thus far.

Data is scarce today with the only real market mover being Consumer Sentiment due out at 9:55.  In the past, Consumer Sentiment has sent the markets into “hysteria” and may very well do the same today.  Depending on the outcome of this report, mortgage backed securities could test resistance, or begin their next leg down and send mortgage rates higher.

What does this mean for Florida Mortgage Rates?  This morning’s mortgage rates may be the best for the foreseeable future as mortgage rates seem to be unable to push any lower.  The overall outlook remains most favorable for higher mortgage rates down the road.

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