Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 17, 2009

Locking Stance: LOCKING    Mortgage Bonds: –16bp

Mortgage backed securities ran to their highest levels yesterday, which meant they hit that second layer of resistance I had talked about.  Subsequently, they pulled back and closed below the first layer, only slightly above yesterday’s posted level.  Today, they are continuing their decline, which is likely the beginning of the retracement period I discussed.

Data for today includes the already released PPI (Producer Price Index) and the upcoming Industrial Production reports.  The headline PPI this morning was up from last month, but below expectations, coming in at 0.3% versus the consensus of 0.5%.  However, Core PPI threw in a kicker with a decrease instead of an increase, coming in at –0.6% versus a consensus of 0.1%.  On the surface, things may look favorable, but the reasons for the decline in Core levels was mostly due to drops in prices for light trucks and passenger cars.  At the same time, food, energy and commodities are all rising, with food and energy both climbing 1.6%.  Later on we will see the Production and Capacity Utilization reports, both part of the Industrial Production data.

What does this mean for Florida Mortgage Rates?  Mortgage rates are edging higher again and will be for the short-term at least.  The outlook remains favorable for mortgage rates at least coming back to the levels of the last couple of days.

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