Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 1, 2009

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds: –19bp

Mortgage Backed Securities held up after their initial drop, ending the day down 28 basis points.  While they opened lower today, they have dropped to test their 200-day moving average as was expected this week, and that level is holding well as support at this time, making the future look optimistic for lower mortgage rates.

Coming to the aide of MBS pricing is the data that was released this morning.  The ADP Employment Report came in weaker than expected, but traders have not reacted significantly on the news.  Keep in mind that this report is not a very accurate forecast for the monthly Jobs Jamboree, and since the jobs data is being released tomorrow, traders probably feel like they may as well wait for the “real” data.  The ISM Manufacturing Index came in basically inline with expectations.  The numbers came in at 44.8, slightly better then expectations of 44.6, but more significantly is the fact that they are up from 42.8 last month.  The data shows the manufacturing sector is still shrinking, but it is approaching “middle ground” and certainly not shrinking as much as before.  Still to come is Crude Inventories, but that data will not likely have much of an impact on mortgage bonds.

What does this mean for Florida Mortgage Rates?  Currently, it appears mortgage rates will remain steady, and may even begin to move lower again by tomorrow.  The outlook remains uncertain, but the future is looking more favorable for lower mortgage rates.

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