Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 10, 2009

Locking Stance:  CAUTIOUSLY FLOATING    Mortgage Bonds: +16bp

Mortgage backed securities are on the move higher again this morning and may continue to run up and test at least one layover of resistance.  Yesterday afternoon skewed the charts again as the monthly mortgage bond rollover caused a –38 basis point adjustment to the FNMA 4.5% mortgage bond price. 

Yesterday’s Treasury Auctions were met with very strong demand once again for the 3-month and 6-month T-Bill auctions.  The 6-month T-Bill results showed a bid/cover ratio of 3.62 with a 0.165% rate, which continues the decline in rates.  The 3-month T-Bill results showed a 3.82 bid/cover ratio and a rate of 0.065%, which actually edged slightly higher from last week’s 0.056%.  And the most important auction of yesterday, the 3-year T-Note auction, resulted in extremely strong demand with a bid/cover ratio of 3.33, up from 2.76 in October, and a 1.404% Yield Awarded, down from 1.445% in October.  This morning will see the 4-week T-Bill and the very important 10-year T-Note comes this afternoon.  We also have a few Feds speaking today, all of which could affect MBS prices as the day moves on.

What does this mean for Florida Mortgage Rates?  Mortgage rates should continue to hold steady or edge lower today.  There needs to be a period where rates edge higher to balance the latest move lower, but overall mortgage rates should continue to hold steady or move lower for the foreseeable future.

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