Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 17, 2009

Locking Stance:  LOCKING    Mortgage Bonds: +25bp

Mortgage backed securities renewed their strength this morning with the fall of the global markets, but the Empire State Manufacturing Survey beat expectations and knocked some of that energy down.  MBS pricing was higher earlier, but is now off those highs and may be indicative of the beginning of weakness, though only time will tell for sure.

Technical indications show mortgage bonds remain relatively strong and that the short term downtrend has been broken.  Current MBS pricing levels are above their 200-day moving average which has been typically a strong floor or ceiling, but in current times has proved to be just another level to be broken as MBS pricing has broken through this layer, both ways, considerably easier than in the past.  With pricing this morning already being released and the fact MBS prices are off their highs of the day, we may have already seen all the pricing improvement we are going to see for a while.

What does this mean for Florida Mortgage Rates?  Mortgage rates managed to improve this morning, however, we may have seen the best pricing already and rates may begin to move higher later today or tomorrow.

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