Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 20, 2009

Locking Stance:  LOCKING    Mortgage Bonds: +12bp

Mortgage backed securities failed to maintain their pricing levels above their 200-day moving average, ultimately ending the day up 25 basis points, but well off their highs, and lows.  Today, with the issuance of this week’s Jobless Claims report, they are attempting to break that level once again, but can they do it with the additional data and Treasury Announcements due out later?

Jobless Claims, as you can imagine, were higher than expected, coming in at 576K versus the consensus of 550K and took the 4-week moving average to 570K.   That is providing some strength to MBS pricing, but we have yet to see the Leading Economic Indicators (LEI) and, more importantly, the Philadelphia Fed Survey, both slated for release at 10:00.  Additionally, we will see the Treasury make its next set of announcements of a multitude of offerings, with the 2-year T-Note, 5-year T-Note and 7-year T-Note being the main concerns.  With the announced added supply (likely a new record), mortgage bond pricing may be over-pressured to drop.

On the technical side, mortgage backed securities are starting to show weakness with a negative crossover on the stochastic indications and another failed attempt to close above their 200-day moving average.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely be under some pressure to rise today, especially after data at 10:00 and the Treasury Announcement at 11:00.

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