Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on June 26, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: –9bp

Mortgage backed securities rallied considerably after punching through their double resistance of the 25-day and 200-day moving averages.  With that hole created, there was not much to stop them, though we will likely see a retest of those levels in the coming days as part of a retracement, or correction.

Data today was mixed, with the Personal Consumption Expenditures Index, the Fed’s favorite gauge on inflation, showing inflation remaining under control.  Both the overall PCE and the Core PCE came in at 0.1%, with the core level coming in below expectations.  Personal Spending was inline with expectations at 0.3%, but Personal Income rose 1.4%, well above the consensus of 0.4%.  Consumer Sentiment was released just over an hour ago and it beat expectations, coming in at 70.8 versus estimates of 69.7.  Inflation indications weigh heavier than the rest, so overall mortgage bonds will benefit.

What does this mean for Florida Mortgage Rates?  Mortgage rates should hold fairly steady today, and likely into the next week.  The longer term outlook has finally changed for the better, though things can change quickly and caution must remain in this volatile market.

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