Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 2, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +12bp

Mortgage bonds are finally showing the strength I wanted to see before switching stances, now that they have successfully closed above their 200-day moving average and are moving even higher this morning.  Once again, we have data fueling the charge.

This morning’s data plays were started by the ADP Employment Report.  While not a very accurate predictor of Friday’s jobs report, traders have been reacting to its predictions more in recent months.  This morning, the ADP Employment Report showed jobs worse than expected, coming in at –298K versus –250K estimates.  The MBA Purchase Applications report showed purchase applications dropped 1.0% and refinance applications dropped 3.1%.  There was more good news (for mortgage backed securities) in the Productivity and Costs report as Productivity increased by 6.6%, beating estimates of 6.4% and Labor Costs came in at –5.9% versus expectations of –5.8%.  We still have Crude Inventories to go, along with Factory Orders, but the big event remaining will clearly be this afternoon’s release of the FOMC Minutes, or “Fed Unplugged”.

What does this mean for Florida Mortgage Rates?  Mortgage rates are ticking slightly lower this morning, but caution must remain as there are still some negatives that can be seen.  The overall outlook remains uncertain, but the future is looking better for lower mortgage rates at the moment.

Leave a Comment

Previous post:

Next post: