Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 19, 2009

Locking Stance: LOCKING    Mortgage Bonds: +19bp

Mortgage backed securities just jumped a little higher, but this remains most apparent as a retracement rather than trendsetting move.  That basically means that after a short period of moving higher, MBS pricing will likely begin to fall again.

There is no data to be seen today, just the weekly short-term Treasury auctions this afternoon along with a couple of Fed speeches, including Big Ben himself, likely trying to defend his position.  Ben Bernanke will be doing the only real speech, though Thomas Hoenig and Donald Kohn will be moderating today and may add their opinions, especially in the Q&A sessions. 

MBS pricing is currently battling their 200-day moving average, though a corrective move could take them all the way to their 25-day, or even their 10-day, moving average.  With stochastic indications turning toward the positive side and edging on the oversold spectrum, the retracement may be under way.

What does this mean for Florida Mortgage Rates?  With technical indications leading the way, any move higher will likely be brief, offering a quick chance to save a few bucks, but the trend still favors higher mortgage rates.

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