Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 5, 2009

Locking Stance: LOCKING    Mortgage Bonds: –28bp

If you read my two reports yesterday, you knew about the “negative” indications that were beginning to show in the mortgage backed securities charts, namely the FNMA (Fannie Mae) 4.5% coupon mortgage bond.  The second report also indicated that MBS pricing would likely plow right through the 25-day moving average and even test the 50-day moving average, I actually meant the 200-day moving average.  Guess what happened?  Yes, even the 200-day moving average failed to stop them, and this morning, they are now testing their 50-day moving average. 

The big report this morning has already been released, which is the ADP Employment Report.  While this report is not always an accurate forecaster of the more important Jobs report on Friday, traders do react to its results and today they were much better than expected, fueling even more negativity in the mortgage bond market.  The ADP Employment Report came in at –371K, higher than the expected –473K and is the best result since last October.  We also saw the MBA Purchase Applications Report, which the MBA did not post any actual numbers interestingly, though they did say the numbers were essentially unchanged, with refinances increasing 7.2%.

Still to come today is the ISM Services Index (10:00), Factory Orders (10:00), and Crude Inventories (10:30).  We will also see the Treasury Announcement for the 10-year T-Note and the 30-year T-Bond at 9:00, which could add additional pressures to MBS prices.

What does this mean for Florida Mortgage Rates?  Mortgage rates are again on the rise, and the future is again looking like higher mortgage rates.

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