Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 18, 2009

Locking Stance: LOCKING    Mortgage Bonds: –9bp

Mortgage backed securities held their ground yesterday and managed to close just above their 200-day moving average.  However, this morning they dropped below it and every attempt to gain back the lost ground has failed thus far.

Today’s data was actually favorable for MBS pricing, with Housing Starts coming in below estimates (581K versus 605K) and Building Permits falling slightly to 560K.  Even the Producer Price Index continued the tame inflation trend by coming in below expectations.  PPI overall came in at –0.9% versus expectations of –0.3% and was –6.4% year over year.  Core PPI was also below expectations with a showing of –0.1% versus the 0.1% expected and 2.6% year over year.  Certainly inflationary concerns are subdued and the housing recovery may be in question, both good things typically for mortgage bonds and mortgage rates. 

What does this mean for Florida Mortgage Rates?  Mortgage rates may be heading back higher as part of the longer term downtrend.

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