Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on September 29, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: –16bp

Mortgage backed securities ended the day quite well, closing 22 basis points higher and furthering their distance from the prior sideways trading pattern.  Both the 3-month and 6-month T-Bill Auctions were met with strong demand yesterday and that gave MBS prices a boost as well.

Today’s slated events are already starting to come in, the first one being the S&P Case-Shiller Housing Price Index (HPI).  The results were the third straight month of gains for home sales prices with the composite-10 index rising 1.7 percent and the composite-20 index climbing 1.6 percent.  With the exception of Las Vegas, all metro areas show gains or at least flat conditions, and that includes the South Florida (Miami-Dade, Broward, etc.) area.  The only concerns are that this data lags and analysts are unsure of the effects of the recent drops in home sales. 

Still to come are a speech by Richard Fisher at TCU on the status of the economy (9:50), Consumer Confidence (10:00), another Treasury Auction (1:00), some other minor data, and the day will end with Charles Plosser speaking at the Lehigh Valley Economic Outlook on the Fed’s role in the economy (7:00).

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging slightly higher today, but with the recent movement, things are looking better for mortgage rates.  The longer term outlook is for steady to improving mortgage rates, but things may change quickly this week so caution needs to be used.  Remember, floating is not for the faint-hearted.

Leave a Comment

Previous post:

Next post: