Locking Stance: LOCKING Mortgage Bonds: –38bp
Mortgage backed securities held up pretty good yesterday, though there was a brief “scare”. They ended the day up around 28 basis points. Today marks the beginning of the barrage of data that will bring extreme volatility in all likelihood due to the shortened trading week, which will end with the monthly Jobs Jamboree and will put the 200-day moving average to the test.
This morning, we saw that the Case-Schiller Housing Price Index at a lackluster –18.12% versus –18.16%. Previous reports have been missing lower and we now see an increase in the numbers on both the 10 and the 20 composites. In about 15 minutes, we will see the Chicago PMI hit the airwaves which may add to the pressures if it comes in above expectations, and another 15 minutes after that, we will see Consumer Confidence released. This afternoon also holds several Fed speeches, so there words may affect the markets as well, adding to the volatility.
What does this mean for Florida Mortgage Rates? Expect mortgage rates to tick higher today, with a chance of further deterioration possible as the day goes on.