Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 22, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: –6bp

It never ceases to amaze me how quickly things can go from good to bad or bad to good in the mortgage markets these days.  Traders will grasp on to anything, even a breadcrumb size piece of news or data, and send the markets in a frenzy, even changing the “picture” quickly.  While mortgage backed securities charts painted a not so certain future earlier this week (and still do), one thing was certain, which was the prior uptrend was broken.  So, where will MBS pricing go, and thus mortgage rates?  Standby for more…

Another day with not a lot on the agenda, mainly MBA Purchase Applications and Crude Inventories, though Big Ben is again speaking today.  Purchase applications did manage to edge higher slightly, and even refinance apps edged a slight gain.  Crude Inventories came in –1.8M this week, so inventories continue to decline slightly.  With Big Ben Bernanke talking down inflationary concerns and economic recovery, MBS pricing has risen and the pattern is looking very interesting now.

Looking at the charts we have an interesting pattern which may play out nicely for mortgage rates, though only time can tell for sure.  We have formed a short term “W”, or double bottom, over the last week and that could mean the next uptrend is about to start.  Stochastics are backing up this potential with a positive crossover from middle ground and allowing a fairly strong move higher.

What does this mean for Florida Mortgage Rates?  Quite simply, we may see a move toward higher mortgage rates for a brief period, but it looks like lower mortgage rates may be on the way.  The pattern is still not certain, but it may be worth floating.

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