Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 9, 2009

Locking Stance:  LOCKING    Mortgage Bonds: –9bp

Resistance is definitely not futile in the mortgage market as resistance overwhelmed mortgage backed securities again yesterday and yanked them back from their highs, ending the day down 9 basis points.  MBS prices continue to fall this morning, but this may be the beginning of a sideways pattern and as we are off the highs, go ahead and lock in those gains just in case the sideways pattern doesn’t develop.

This morning’s data was International Trade and it showed the Balance of Trade came in slightly above expectations at $-30.7B (versus ($-33.0B), which is also above last month’s revised reading of $-31.9B).  There are a few concerns showing in the charts, but they may just be indicative of the forming of a sideways pattern and not a trend reversal.  It is just too early to tell at the moment, but the concerns are enough to get me to finally change stance.

The fast stochastic indications are negative, though the slow stochastics are essentially flat.  Both are on the edge of the overbought spectrum.  With the resistance holding against two separate attempts to move higher, this move lower may be more than just a corrective move.  The good news is that the 25-day moving average has moved above what could be considered the bottom of the potential sideways trading pattern, providing a double layer of support in essence.  There are more positive signs to be seen as well, so at the moment I am leaning towards this move lower developing into a sideways trading pattern, but since we are at the top of this potential pattern, you may as well lock at the best mortgage rates.

What does this mean for Florida Mortgage Rates?  It is looking more like we are at the lowest mortgage rates for the foreseeable future.  Short-term, locking is the best solution for sure, the longer term outlook is not quite certain, though it appears lower mortgage rates than the current levels are not very likely.

Leave a Comment

Previous post:

Next post: