Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 23, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +3bp

Mortgage backed securities managed to end the day down only 12 basis points and off their lows, setting up a move that could run up to the next level of resistance at the 100-day moving average.  However, there is some weakness being seen and hence why we need to maintain the caution.  Remember, the current market is quite finicky about things and changes course quickly.

On with the data…Jobless Claims were released and came in slightly better than expected, at 554K versus 560K, bringing the 4-week moving average down to 566K, but were higher than last week’s 522K showing.  The Labor Department stated that claims should be returning to the trend line within a few weeks, hinting at the numbers reaching 600K again.  Continuing claims fell again this week, dropping 88K to 6.225M.  Existing Home Sales is due out later today (10:00), and traders will have their eyes focused on Daniel Tarullo’s testimony on regulatory restructuring.  This afternoon will see another big Treasury Announcement, this time covering the 3-month, 6-month, and 52-week T-Bills along with the 2-year, 5-year, and 7-year T-Notes and even includes the 20-year TIPS.  This added supply may cause MBS pricing to fold and at least retest their support.

What does this mean for Florida Mortgage Rates?  The future remains uncertain, but so long as mortgage rates do not fall below support, the future looks to hold lower mortgage rates.

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