Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 25, 2009

Locking Stance: LOCKING    Mortgage Bonds: –16bp

Mortgage backed securities are down only slightly at this point, however we just saw the data for today released and mortgage bonds are not likely to be happy with them at all.  We have the S&P Case-Shiller Housing Price Index (released at 9:00) and Consumer Confidence that were just released and both are unfavorable for MBS pricing.

First off, the biggie of the two was Consumer Confidence, which is now at 54.1, beating expectations of 48.0.  The Case-Shiller HPI showed decent rates of improvement on both the Composite-10 and Composite-20 Indexes, up 1.4% each and adding more signals that the housing bottom may have come and gone as this is the second month of gains as well.  As more and more signs of a recovering economy come in, mortgage backed securities are likely to keep taking hits, sending mortgage rates higher.  Big Ben Bernanke was nominated for a second term by President Barack Obama, which may very well add to the dollar’s decline and has many up in arms, with some even asking to get rid of the Fed altogether.

What does this mean for Florida Mortgage Rates?  Mortgage rates are likely to continue their climb but may hold their ground today awaiting more data.  The “squeeze play is on and may break this week.

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