Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 7, 2009

Locking Stance: LOCKING    Mortgage Bonds: –69bp

Today is the Jobs Jamboree, which has already been released and not surprisingly it was better than expected, and mortgage backed securities are in a freefall out of the starting gates.  Based on the charts, we are now out of any chance of a sideways pattern and back into a downward trend, so mortgage rates are likely back on the rise, maybe this time for good.

This morning’s Jobs Jamboree did not hold any good news for MBS pricing.  Here is the quick breakdown…

Actual Expected
Nonfarm Payrolls -247K -328K
Unemployment Rate 9.4% 9.6%
Hourly Earnings 0.2% 0.1%
Average Work Week 33.1 33.0

With the unemployment rate coming in below expectations, even down from last month, as the job losses were less than expected, that was bad enough.  Adding to the inflationary fears, Hourly Earnings rose a little more than expected and there were more work hours on average, giving even more fuel to the economic recovery viewpoint.  As if that was not enough, revisions for the last two months were also for the better, with job losses down another 43K.  The bottom line is that mortgage bonds were robbed of any strength they might have had.

The good news is there will need to be a retracement at some point, likely next week, but the question will be whether that retracement will bring mortgage rates any lower than they are this morning.  We almost certainly will not see mortgage as low as we saw earlier this, or even last week, for quite some time, maybe never.

What does this mean for Florida Mortgage Rates?  Yes, mortgage rates are still on the rise and now the outlook is again for higher mortgage rates for the foreseeable future.

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