Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 16, 2009

Locking Stance:  LOCKING    Mortgage Bonds: –6bp

Mortgage backed securities are actually off their lows this morning, but remain very hesitant to even try and break their 200-day moving average.  Unless they can find some strength from something, this resistance will hold and ultimately mortgage rates will be back on the rise as MBS pricing falters.

For data, we had several reports this morning, though none were considered major.  Housing Starts and Building Permits both beat expectations and were higher this go around, bringing some “faith” back into the markets regarding reaching the bottom of housing.  Industrial Production was basically inline with expectations, as was Capacity Utilization.  Producer Price Index was the inflationary measure of the day and was quite tame, coming in at 0.2% (0.7% expected) overall and at just –0.1% (0.1% expected) at the core level.  Keep in mind that PPI is not a very good measure of inflation as the costs, and even savings, at this level do not always get passed on to the consumer.  The Consumer Price Index will be released tomorrow, and more importantly the Personal Consumption Expenditures Index will be released next week, after the next FOMC Meeting.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely hold steady today, if not tick slightly higher.  For the foreseeable future, mortgage rates look to return to their path higher unless some news or data can break the trend.

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