Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 11, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +9bp

Mortgage backed securities had another up and down day, finally ending the day up 41 basis points, though with the monthly mortgage bond rollover of –35 basis points, the charts are deceptive as they show MBS pricing up only 6 basis points.  Nevertheless, they continue to show strength.

Today’s data included the Import and Export Prices which showed the effects of inflation caused by the continued weakness of the dollar, which is fueled by the government’s actions despite their “strong dollar policy”.  However, the big event for the day is the Consumer Sentiment report, which was just released.   Consumer Sentiment was expected to continue its climb to 67.0, up from 65.7 last month.  Consumer Sentiment, however, beat even expectations by climbing to 70.2 and this could cause the correction we have been waiting for. 

Technically speaking, the 25-day moving average is attempting the positive crossover of the 100-day MA today.  Stochastic indications remain on the edge of the overbought spectrum and flattening out.  Even if we see weakness today, we can expect a rebound next week in all likelihood.

What does this mean for Florida Mortgage Rates?  Mortgage rates may tick slightly higher in the near term, though the overall trend remains favorable for steady or decreasing mortgage interest rates.

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