Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on July 30, 2009

Locking Stance: LOCKING    Mortgage Bonds: +3bp

Mortgage backed securities had a wild ride yesterday afternoon, a little more than I anticipated, but my thoughts seemed to play out correctly, namely that the charts were not showing MBS pricing was going to remain strong.  The Treasury Auction of the 5-year Treasury Note went poorly and that sent MBS pricing considerably lower, though the Beige Book brought back some hope.

This morning, we have already seen the main data play of the day, Jobless Claims.  Jobless Claims came in almost exactly in line with expectations with a showing of 584K (versus 585K).  Continuing claims dropped again this week, falling to 6.197 million.  Again, this drop was likely due to expiration of benefits versus new employment.

This afternoon will see yet another Treasury Auction, this time the 7-year Treasury Note.  Since Treasury Auctions of longer term securities this week have been growing steadily worse in performance, the 7-year T-Note auction will likely pressure mortgage bond pricing lower as well.  That auction’s results get released around 1:00, so look for market reaction after that.

What does this mean for Florida Mortgage Rates?  Mortgage rates remain unable to mount any strong move lower, which means odds continue to favor steady or higher mortgage rates.

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