Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 3, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: –66bp

Mortgage backed securities had finished last week on a very good note, with a huge rally all the way up to their 100-day moving average.  If you read my weekly Mortgage Market Update at Lenderama, you would have known this move lower was coming, a correction of sorts, but that the future may still look good overall, hence no change in my stance for the moment.

So why the big move lower today?  The ISM Manufacturing Index was released this morning and it was considerably better than expected, coming in at 48.9 (nearly 50) compared to expectations of 46.5 and up from 44.8.  Construction Spending was also better than expectations, coming in at 0.3% versus estimates of –0.5%, adding more fuel to the decline.  However, MBS pricing still holds above its 25-day moving average which has already been tested (and held) as support.  So long as this level holds, the outlook remains possible for lower mortgage rates.

What does this mean for Florida Mortgage Rates?  Mortgage rates have edged higher today, but may move back lower as the week progresses as long as support holds.

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