Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 1, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +19bp

As I said in my weekly Mortgage Market Update at Lenderama, and again here yesterday, mortgage backed securities may indeed break through their resistance layer and send mortgage rates lower, which is why I have remained in my CAUTIOUSLY FLOATING stance this whole time.  It is amazing sometimes just how accurate chart reading can be and predict what will happen, even before data is released.

The fuel that mortgage bonds are receiving today is from economic data again.  Just as yesterday held data mostly favorable to MBS pricing, today has been no different thus far.  One of the biggest data players was released today, which is the Fed’s favorite gauge on inflation, the PCE (Personal Consumption Expenditures Index).  PCE was inline with expectations on the monthly level, at 0.1%, but was below expectations on the year over year, coming in at 1.3% versus 1.4%, which is below the Fed’s target range of 1.5 – 2.0%.  Personal Spending was higher than expected though, coming in at 1.3% versus 1.1% monthly and –0.3% versus –1.6% on the year over year.  Personal Income was above expectations as well on the monthly side (0.2% versus 0.1%), but was below expectations on the year over year (-2.6% versus –2.4%).  Jobless Claims were also helping mortgage backed securities as they were higher than expected, at 551K versus 537K.

Big Ben Bernanke was speaking today, but it was all about regulatory reform and didn’t hit on monetary policy or the status of the economy.  Still to come are the ISM Manufacturing Index, another big player, Construction Spending, Pending Home Sales and a plethora of Treasury Announcements of upcoming auctions.  Don’t forget tomorrow is the Jobs Jamboree, certainly providing some more fun in the markets.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging lower today, and the trend is now favoring lower mortgage rates for the foreseeable future.

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