Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 8, 2009

Locking Stance: CAUTIOUSLY FLOATING    Mortgage Bonds:  +6bp

Mortgage backed securities continue to show strength, but resistance is currently holding them back.  Having closed yesterday at the resistance level, any move higher is an attempt to break this resistance, and MBS prices are showing strength as they are well off their earlier lows and are currently higher for the day.

Data is once again fairly scarce, though we did have Jobless Claims this morning, along with a few other minor reports.  Jobless Claims came in below expectations at 521K versus estimates of 540K and the 4-week moving average is at 539.75K.  Continuing claims were also down, coming in at 6.040 million and the Unemployment Rate for insured workers now stands at 4.5%.  This is certainly not favorable news for mortgage bonds, but they are still showing strength nonetheless.  In fact, even this morning’s Chain Store Sales posted strong results and that means next Wednesday’s Retail Sales report may prove better than expected, so the outlook of mortgage rates may change.

Perhaps the strength mortgage backed securities continue to show is coming from the Treasury Auctions, which continue to see good results.  The 10-year T-Note auction carried a bid/cover ratio of 3.01, up from 2.77 last month, and the yield was at 3.210%, down from 3.510%.  We will see the 30-year T-Bond results at 1:00 this afternoon, so we will see if the winds of change begin to blow.

What does this mean for Florida Mortgage Rates?  Mortgage rates will likely hold steady today, though the outlook of mortgage rates may be changing as resistance seems quite strong currently.

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