Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 2, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds: +19bp

Mortgage backed securities continued their rally this morning as expected on the heels of the Jobs Jamboree.  For those of you that are nearing closing, go ahead and lock and be happy with the gains because there is going to be a retracement soon in all likelihood.  For those with time to go, floating may very well provide better terms ahead.

As for the Jobs Jamboree, here is the quick overview.  Nonfarm Payrolls came in at –263K versus the expectations of –170K, and even worse than the ADP prediction of –200K.  The Unemployment Rate came in as expected at 9.8%.  Average Hourly Earnings was below expectations at 0.1% versus 0.2% and Average Work Week was also below expectations at 33.0 versus 33.1.  Overall, data favored MBS pricing heavily.  There is not much else going on today, so expect mortgage bonds to remain up for the day, though overhead resistance has pushed them back from their highs and may be signaling the beginning of the retracement.

What does this mean for Florida Mortgage Rates?  For those closing in the next few days or so, lock those loans.  For those with more time, and the stomach for it, floating may prove beneficial still.

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