Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 11, 2009

Locking Stance: LOCKING    Mortgage Bonds: +34bp

Mortgage backed securities are up again today, having pushed through their 50-day moving average and managed to get up to their 25-day moving average.  This move is certainly not unexpected as I outlined yesterday and it appears, right now at least, that the 25-day moving average will be the end of the correction as MBS prices have already pulled back after hitting that level.

Nonfarm Productivity was released this morning and it came in higher than expected at 6.4% versus 5.5%.  Unit Labor Costs, another aspect of the Productivity and Costs Report this morning, came in lower than expected at –5.8% versus –2.8%.  Wholesale Trade dropped to –1.7% from last month’s –0.8%.  This afternoon will see the 3-year Treasury Note Auction (1:00), which could add to MBS pricing pressures, along with the fact the FOMC is on day 1 of their meeting.  Things begin to “heat up” tomorrow.

What does this mean for Florida Mortgage Rates?  It looks like the “correction” is over and mortgage rates will start their next leg higher.

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