Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 17, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +16bp

Mortgage backed securities ended the day down 6 basis points, well above their lows, but also well off their highs, adding more than the typical amount of caution into the mix.  They were pushed back by the 200-day moving average, which has now solidified itself as resistance and may create problems moving forward.  Over the next few trading days, we will gain a better picture of whether or not the sideways pattern is in jeopardy.

Today will be a fairly big test of mortgage bonds’ ability to hold their ground.  Jobless Claims came in better than expected (545K versus 575K), which could pressure MBS pricing.  Housing starts were almost exactly inline with expectations, coming in at 598K versus 600K, and Building Permits came in at 579K.  We still have the Philadelphia Fed Survey, a major player, coming up at 10:00 and numerous Treasury Announcements, including the 2-year, 5-year, and 7-year Treasury Note (T-Note) auctions coming up at 11:00.

What does this mean for Florida Mortgage Rates?  For now, mortgage rates have ticked lower this morning, though the outlook may be changing.  If today does not go very well, look for another update with a change in stance.

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