Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on October 27, 2009

Locking Stance: LOCKING    Mortgage Bonds: +0bp

Mortgage backed securities fell hard yesterday, that being that they closed the day down 34 basis points.  Since they closed below their recent lows, they have essentially eliminated the possibility of establishing a sideways trading pattern and preventing the downtrend, the latter now being established.

Adding to the negativity that I talked about yesterday, with MBS prices dropping yesterday, the negative crossover of the 10-day moving average through both the 50-day and 200-day moving averages was completed as well and that spells nothing but trouble for the future of mortgage rates.  Even stochastic indications continue to look ugly, though the good news is that they cannot get much worse since they are about to hit the bottom of their charts.

As for data today, things do start heating up and that could be either good or bad.  If data comes out favorable for mortgage bonds, the light at the end of the tunnel may be ignited again, but if not, it will likely be extinguished.  I will be on the road today getting my routine flight physical, among other things, but will keep an eye out and report anything significant from my Blackberry, in its crude format.

What does this mean for Florida Mortgage Rates?  Mortgage rates continue to edge higher and the hopes of that trend stopping is almost completely eliminated.  The odds continue to favor higher mortgage rates for the foreseeable future.

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