Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 27, 2009

Locking Stance: LOCKING    Mortgage Bonds: –28bp

Mortgage backed securities are off their lows, but their direction remains lower and away from their 200-day moving average.  With the exception of the “W” that formed, which is now support, there is not much positive to talk about in view of the charts.

Today’s data play was New Home Sales, which came in the same as Existing Home Sales last week, beating expectations.  New Home Sales exceeded expectations of 350K with a showing of 384K and that adds to the good news in the housing market.  In fact, this month’s data was the best showing since the housing bubble burst, with its 11 percent jump.  Additionally, inventory dropped to 8.8 months, down from 10.2 months, and as inventory drops, prices tend to stabilize, though this month’s data was likely the result of deep discounting so price stabilization remains to be seen.  There also may be added pressure on MBS pricing this afternoon as the Treasury Department auctions off the 20-year TIPS at 1:00.

What does this mean for Florida Mortgage Rates?  Mortgage rates appear to be on the rise for the foreseeable future, simply put.

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