Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 4, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +3bp

Mortgage bonds were down this morning, but have reversed course and are currently slightly higher than when they closed yesterday, which was down 12 basis points.  While yesterday’s dip was hardly a corrective move, the long term trend remains favorable for steady to lower mortgage rates.

This morning saw the monthly Jobs Jamboree, and this go around was not much of a surprise and was generally friendly for mortgage backed securities.  Nonfarm Payrolls came in at –216K, slightly worse than estimates of –200K, though not as bad as the ADP Employment Report may have led traders to be.  The Unemployment Rate came in worse than expected with a showing of 9.7%, versus 9.6%.  Average Work Week held steady and was inline with expectations of 33.1 hours.  And Average Hourly Earnings was slightly higher than expected, coming in at 0.3%, slightly higher than the 0.2% predicted.  Overall, MBS pricing should show some strength after this report.

What does this mean for Florida Mortgage Rates?  Short term mortgage rates may tick higher still, though the longer term picture remains favorable for steady mortgage rates, possibly even seeing mortgage rates move lower.

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