Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 23, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +3bp

Mortgage backed securities ended the day up 38 basis points yesterday and were unsuccessful in their repeated attempts to break through their 200-day moving average.  While recovering from a morning drop, so far today’s current battle has yielded the same results.  There are mixed signals and caution must remain, though signs are turning a little more positive.

Data today is scarce, with all eyes turning to the FOMC Meeting and awaiting their decision tomorrow.  Existing Home Sales was released a little while ago and was below expectations bringing more sentiment that the Fed will have to do more to drive mortgage rates lower to stimulate the housing market.  Existing Home Sales was reported at 4.770M (versus 4.850M), and that was a monthly change of 2.4%, which brings the annual rate to –3.6%. 

There are some Treasury Auctions today, most notably the 2-year T-Note, which could impact the markets slightly.  Yesterday’s Treasury Auctions did not go as well as the prior ones, with the bid/cover ratios dropping and yields climbing from the prior auctions.  If the auctions do not go well today, the markets may back off and a change in stance may be warranted.

What does this mean for Florida Mortgage Rates?  Mortgage rates are holding steady for now, but that picture may change in the next day or two.

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