Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 23, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: –9bp

Mortgage backed securities ended their day up 12 basis points but are also down 9 today, so they are basically flat, again.  Nothing seems to be providing them guidance as to the direction they should be moving in the future, but that may change this afternoon.  That’s right, today is “Fed Day”.

MBA Purchase Applications was released this morning and showed an increase in purchase applications of 5.6% and refinance applications rose 17.4% as 30-year loans dipped below 5% according to the report.  Crude Inventories will be released at 10:30 and may affect the markets slightly if there are any surprises, but there are two events today that carry some weight. 

At 1:00, the results of the 5-year Treasury Note auction will be released.  Despite the record levels of Treasury amounts this week, so far the auctions have been met with strong demand.  If we continue to see strong demand, MBS pricing could move higher as a result (lower mortgage rates).  Then, at 2:15, is the FOMC Meeting Announcement.  Personally, I could care less what the Fed’s Decision on rates is because for mortgage rates, it is all about the Policy Statement.  I promise I will get around to dissecting it this time over at Florida Mortgage Report.

What does this mean for Florida Mortgage Rates?  Hang tight as mortgage rates move ever so slightly back and forth, but this afternoon could see a sizeable move, especially after the FOMC Meeting Announcement.

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