Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 15, 2009

Locking Stance: LOCKING    Mortgage Bonds: –12bp

Mortgage backed securities fell a little further and closed yesterday down 38bp, well below their 50-day moving average.  This morning, they are continuing their move lower, possibly testing support at their 200-day moving average, and with their 25-day moving average coming up to meet that level, we could see a double support layer form in the next day or two.

There is a lot of data to digest today, and it will continue as the day progresses, so be ready for anything.  This morning started out with the weekly MBA Purchase Applications which showed purchase applications fell 9.4%, though refinance applications rose 18% as mortgage rates fell.  However, the big data play this morning was CPI and that came in as estimated overall, but the core level was slightly higher than expected, which will likely pressure MBS pricing.  The exact numbers were overall 0.7% (versus 0.7%) and 0.2% (versus 0.1%).  Adding to the problems was for mortgage bonds was the Empire State Manufacturing Index which beat expectations fairly dramatically, coming in at –0.55 versus expectations of –4.5.  Overall, the data this morning is not favorable for MBS pricing, and thus mortgage rates.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely be moving higher today and lower mortgage rates in the future are no longer certain.

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