Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 7, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: –16bp

There are no economic reports that do anything for the mortgage market due for release today, though there is this afternoon’s 3-year T-Note and Treasury STRIPS auctions which may affect the markets some.  Overall, I expect mortgage rates to hold steady today, certainly remain within their current trading range, trapped between their 50-day and 200-day moving averages.

On the technical side, mortgage backed securities will be forced to make a “breakout” soon with their 50-day moving average swooping down from the top and the 200-day moving average rising slowly from the bottom.  Stochastic indications are such that a drop to the 200-day moving average support is likely, but beyond that, we may see a break to the high side in MBS pricing which would send mortgage rates lower, and that could all happen as this week comes to a close.

What does this mean for Florida Mortgage Rates?  If you are closing in the next few days, you may want to go ahead and lock that loan if you haven’t already.  As for those closing later, floating may yet provide a benefit if you don’t mind taking a little risk.

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