Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on August 31, 2009

Locking Stance: LOCKING    Mortgage Bonds:  +19bp

Mortgage backed securities appear to be retesting their 100-day moving average, but without solid data, this level will likely hold yet another attempt, the fourth in a week.  As for that solid data, we have the Chicago PMI that was just released.

Chicago PMI came in at 50.0, which was better than expectations of 48.0.  This puts Chicago PMI at the breakeven level and up from 43.4 a month ago.  This data provides more hope for a recovering economy and is generally bad news for mortgage backed securities, and thus mortgage rates.  Mortgage bonds are currently higher, almost touching their 200-day moving average and above their strong resistance of the 100-day moving average, which is good news, but can they hold on?

What does this mean for Florida Mortgage Rates?  Mortgage rates ticked lower this morning, but I am still not comfortable with the risk/reward ratio, certainly not with this morning’s data and the data coming.

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