Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 8, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +6bp

Mortgage backed securities had a pretty good day yesterday despite the lack of data and the stochastic indications.  They ended the day up 19 basis points and even closed slightly above their 50-day moving average.  This morning, they are continuing their move higher, at least for now, though a snapback may occur as the day moves on.

Yesterday’s Treasury Auctions went well with the 4-week T-Bill auction having a strong bid/cover ratio of 3.60 and a yield of 0.160 and the 3-year T-Note having a good bid/cover ratio of 2.62 and the yield dropping to 1.519.  This morning’s MBA Purchase Applications numbers showed purchases jumped 6.7% and refinances jumped 15.2%.  Later today we will see Crude Inventories (10:30), Charles Evans speak (12:55) and the 10-year T-Note Auction (1:00), as well as see where stocks move.  There is a fairly good chance that MBS pricing could turn and head lower today and I may need to change my stance, so be ready.

What does this mean for Florida Mortgage Rates?  Mortgage rates have been edging lower and may hold steady today, though a move higher as the day progresses cannot be ruled out.

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