Florida Mortgage Rates – Morning Report

by Florida's #1 Mortgage Planner on November 23, 2009

Locking Stance: LOCKING    Mortgage Bonds: 0bp

Mortgage backed securities continue their attempts to hold their ground, but remember that we still need that retracement to take place.  The overall outlook remains favorable for higher mortgage rates in the near future.

Today’s data consisted only of the just released Existing Home Sales, which beat expectations.  Existing Home Sales came in at 6.10 M  versus the consensus of 5.70 M, which helps downplay last week’s housing data.  We still have New Home Sales and the Case-Shiller HPI coming up as the week unfolds.  We will also see the weekly auctions of the 3-month and 6-month Treasury Bills, but added to the agenda for today is the 2-year Treasury Note auction.  If Treasury auctions continue to go well, MBS prices could hold their ground, but they could falter if these auctions show weakness.

As we look at the charts, the outlook is for mortgage rates to edge higher, then possibly move lower again.  The major caution for this week is that it is a shortened trading week, so increased volatility is likely, especially as the more impactful reports are released.  These reports start tomorrow and Wednesday will be a major day for the markets.

What does this mean for Florida Mortgage Rates?  Expect mortgage rates to hold steady or edge higher today and for the near term.  The long-term outlook still allows for lower mortgage rates, but that could change this week.

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