Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 13, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: –9bp

Mortgage backed securities ended the week holding their own within the gap between their 50-day and 100-day moving averages.  With no data plays today, just the standard short-term Treasury auctions, the likelihood of them breaking out of this range is not very high.  In fact, while MBS pricing is down today, they are off their lows already.

Tomorrow begins the influx of data that could change the way the market looks moving forward.  Tomorrow’s Retail Sales and Producer Price Index will likely stir the markets a bit, the question being in which direction.  Inflation has been favorable thus far, but the latest economic data has not, so Retail Sales could send MBS prices lower, which would not be good for mortgage rates.  Currently, the charts favor a drop to retest the 50-day moving average at a minimum, but the overall outlook remains favorable for mortgage rates.

What does this mean for Florida Mortgage Rates?  Mortgage rates should hold fairly steady today, though that will likely change tomorrow.

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